Investing.com-- Bitcoin fell on Friday, retreating after a short-lived rebound as risk appetite was dented by heightened concerns over a U.S.-China trade war, which largely offset relief over President Donald Trump postponing plans for higher tariffs.
The world’s biggest cryptocurrency tracked losses in broader risk-driven markets, as the U.S. and China imposed a volley of steep trade tariffs on each other. The move drove up concerns over a bitter trade war between the world’s biggest economies which could severely crimp growth.
Bitcoin fell 1.8% to $80,680.4 by 01:51 ET (05:51 GMT).
Bitcoin set to fall after whipsaw week on trade jitters
Bitcoin was trading down 3.4% so far this week after logging wild swings on heightened uncertainty over global trade and economic growth.
The world’s biggest cryptocurrency had slumped as low as $74,000 after Trump initially showed little intent to back off from his plans for reciprocal tariffs. But Bitcoin had then rebounded sharply after Trump announced a 90-day extension to the imposition of his steep reciprocal tariffs against major U.S. trading partners.
But China was not included in this extension, with Trump instead hiking tariffs on the country to a staggering 145%, drawing ire from Beijing. China retaliated by imposing 84% tariffs on the U.S. earlier this week.
The move marked a potential escalation in a rapidly growing trade war between the world’s biggest economies, and ramped up concerns over its economic impact. Markets also grew increasingly uncertain over U.S. economic policies under Trump, given his recent flip-flopping on trade tariffs.
Losses in crypto came in tandem with a sharp sell-down in broader risk-driven markets, particularly equities. Bitcoin has moved largely in lockstep with U.S. stocks, specifically the Nasdaq, raising more questions over the crypto’s validity as a safe haven or inflation hedge.
Safe havens such as gold and the Japanese yen were the top performing assets this week.
Bitcoin was also dented this week by major corporate holder Strategy (NASDAQ: MSTR ) disclosing a $5.9 billion unrealized loss on its digital asset holdings, especially following a prolonged slump in Bitcoin prices.
Several major whales were also seen mobilizing vast amounts of Bitcoin onto exchanges, potentially heralding more sale action.
Crypto price today: altcoins dip tracking Bitcoin losses
Broader crypto markets all retreated amid weak risk appetite, falling in line with Bitcoin. But some altcoins also appeared to be steadying after recent price dumps.
World no.2 crypto Ether fell 4% to $1,551.28, while XRP steadied at $2.0009 but was sitting on a nearly 7% slide this week.
Cardano rose 1%, while Solana and Polygon marked small gains.
Amid meme tokens, Dogecoin fell slightly, while $TRUMP fell 0.5% after rebounding from record lows this week.