Bitcoin slipped 1.9% to $102,363.00 on Tuesday as traders locked in profits following its recent breakout above the $100,000 threshold. The world’s leading cryptocurrency had surged past $105,000 last week, propelled by optimism around a temporary easing of U.S.-China trade tensions. However, anticipation over key U.S. Consumer Price Index (CPI) data later in the day tempered risk appetite and sparked a modest sell-off.
Despite the pullback, sentiment remains cautiously optimistic. Bitcoin’s rally last week was fueled by easing geopolitical friction and broader risk-on appetite, which also lifted equity markets and tech stocks.
Tariff Truce Boosts Crypto Market Mood
The weekend’s high-level trade talks in Switzerland between U.S. and Chinese officials resulted in a 90-day tariff truce. Washington agreed to reduce duties on Chinese goods from 145% to 30%, while Beijing cut its retaliatory tariffs from 125% to 10%.
President Donald Trump also signed an executive order slashing tariffs on De Minimis imports from China to 54%, down from 120%, and maintained a $100 flat fee.
These developments injected optimism into crypto markets, which often benefit from increased investor confidence during macroeconomic stability. However, traders remained cautious, awaiting further clarity on the long-term trajectory of U.S.-China trade negotiations.
In parallel, the U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins revealed upcoming crypto regulatory reforms. These include new guidelines on token issuance, exemptions, and investor protections—potentially reshaping how crypto projects enter the U.S. market.
Corporate Moves Fuel Bitcoin Exposure
Crypto firms are taking cues from friendlier U.S. policy by pushing toward public listings:
- American Bitcoin, co-founded by Eric Trump and Donald Trump Jr., announced a Nasdaq listing through a merger with Gryphon Digital Mining.
- Animoca Brands, a Hong Kong-based crypto investor, plans to list in New York, according to The Financial Times.
- KindlyMD Inc (NASDAQ: KDLY) soared 251% on Monday after announcing a merger with Nakamoto Holdings to pursue a Bitcoin treasury strategy.
Altcoins Underperform Bitcoin
While Bitcoin’s decline was modest, altcoins saw steeper drops:
- Ethereum: -2.5% to $2,456.57
- Solana: -3%
- Cardano: -3.5%
- Polygon: -4%
- Dogecoin: -7.8%
- $TRUMP: -10%
- XRP bucked the trend, rising 4.5% to $2.5071
As markets await U.S. inflation data, Bitcoin’s resilience above the $100,000 mark may hinge on Federal Reserve policy signals and investor sentiment toward regulation.