Bitcoin fell below the $100,000 mark, hitting $98,199 as renewed trade tensions between the US and China shook financial markets.
What’s Driving Bitcoin’s Decline?
The US-China trade war intensified as the US imposed a 10% tariff on all Chinese imports. China retaliated with tariffs on US oil and LNG and launched an antitrust investigation into Google LLC, weakening investor sentiment and leading to a sell-off in risk assets, including Bitcoin.
Institutional Investors Pull Back
On Monday, US investors withdrew $235 million from Bitcoin ETFs. Open interest in Bitcoin futures on CME Group fell 4%, indicating reduced institutional confidence.
Volatility and Market Uncertainty
BTC surged $10,000 in a single day after bouncing from $91,500, driven by news that tariffs on Mexico and Canada would be delayed. However, Bitcoin quickly reversed gains after China's retaliatory measures were announced. Analysts suggest BTC will need to hold $93K to remain on track for a new all-time high.
Despite short-term volatility, some analysts remain optimistic and expect new all-time highs in February if BTC stays above $93K. Market participants continue to watch economic and geopolitical developments to gauge Bitcoin's next move.
