Bitcoin dropped more than 2 percent on Sunday, as digital assets were unable to gain traction amid Washington’s shifting messages on China trade policy.
The price of world’s most popular crypto dropped to $83,482 at the start of Asia trading, partially undoing gains made last week and performing below equity markets.
CoinGecko’s data show that Ethereum (the second largest crypto) fell below the $1,600 mark, and altcoins had mixed performances.
The drop followed a weekend of mixed messages from the Trump administration over whether Chinese-made electronics—including smartphones, semiconductors, and laptops—would face fresh tariffs.
The President of the United States, Donald Trump, spoke to Late Sunday Evening. Postings Truth Social clarified that, while some electronics are temporarily exempt from the 10% tariff, they will still be subject to an additional 20% tax due to concerns about national security or fentanyl.
“NOBODY is getting ‘off the hook’ for the unfair trade balances, and non-monetary tariff barriers, that other countries have used against us, especially not China, which, by far, treats us the worst!” Trump wrote. “There was no tariff 'exception’ announced on Friday.”
Howard Lutnick of the Department of Commerce said at the weekend, “further Tariffs sectorial Within the next 2 months, a new law on electronic devices will be implemented.
Stock markets appeared comforted with the temporary relief.
Nasdaq 100 futures rose more than 1% in early trading, while S&P 500 futures gained 0.7%. Crypto showed less resilience.
This price movement is in stark contrast to the relative calm that was seen last week when traders were positioning themselves for a rise following signs of inflation beginning. The trend is down.
This narrative is muddied due to the resurgence of geopolitical risks and signs. Slowing Institutional flows in U.S. listed crypto ETFs
Analyst Darren Chu at BRN said that “the expectation has diminished for an emergency cut in rates ahead of May’s Fed meeting (and a cut prior to the Fed meeting held in June), and the inflationary medium-term impacts from Trump tariffs will now keep Powell from cutting until June.” Decrypt A statement is a good example.
Other words, an increased-for-longer position could further exasperate risk assets while investors try to navigate the Fed’s hawkish positions.
Analysts now watch key levels around $81,000 as potential support. If the threshold is breached, it could lead to a rapid liquidation of leveraged positions and further stress on an already fragile market.
