Investing.com– The US fell on Tuesday, retreating from recent highs, as risk appetite was shaken by President-elect Donald Trump’s threat to impose new tariffs on China and others country.
The world’s largest cryptocurrency was also hit by a wave of selling pressure, likely profit-taking, after failing to breach the coveted $100,000 level last week.
fell 3.15% to $94,897 as of 7:45 a.m. The coin hit a record high of over $99,000 last week, but has pulled back sharply since.
Bitcoin’s rally has been driven primarily by optimism about improved regulations under Trump. But the prospect of Trump imposing more tariffs on his U.S. trading partners has sent risk appetite tumbling.
Risk sentiment shaken by Trump’s threat of tariffs
Trump said he would impose tariffs of 10% on China and 25% on Canada and Mexico to combat illegal immigration and illicit drugs entering the United States.
His comments sparked fears of a new trade war between the world’s largest economies, which bodes ill for growth.
Major risk markets retreated after Trump’s threat, while the dollar rose sharply and returned within sight of a two-year high hit last week.
Trump has promised to impose high tariffs on China and other major U.S. trading partners, which could weigh on global growth and hurt risk assets in the years to come.
Trump’s cryptocurrency policies in focus
Cryptocurrency markets were also waiting for more clues about what Trump’s policies would mean for the sector.
Trump campaigned on a pro-crypto agenda, promising to make America the cryptocurrency capital of the world. The people he chose to serve as Treasury Secretary and Commerce Secretary are both pro-cryptocurrency.
But markets are now waiting to see Trump’s concrete policies when he takes office in January.
Bitcoin’s weakness has spilled over into other crypto and crypto-adjacent assets this week. MicroStrategy Incorporated (NASDAQ:), the world’s largest bitcoin holding company, has fallen from its record highs over the past three sessions.
Last week, the company purchased over $5 billion worth of bitcoin, a recent report indicated.
Cryptocurrency Prices Today: Altcoins Follow Bitcoin’s Losses
Cryptocurrency prices fell on Tuesday, with most altcoins following Bitcoin’s decline.
The world’s No. 2 crypto was an exception, rising slightly to $3,242.17.
fell 1.4% after sharp gains last week, particularly after U.S. Securities and Exchange Commission Chairman Gary Gensler said he would leave office in January.
and fell from 1.9% to 6.3%, while among crypto memes, lost 4.2%.
