BTC Update: Bitcoin Dips Under $104K, Cryptocurrencies Decline Amid Rising U.S.-China Tariff Disputes

Markets went red on Friday due to renewed tariff-related apprehensions. Bitcoin is down 2.1% in the last 24 hours, trading just above $104,000 after briefly hitting a session low of $103,900. The CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization, excluding stablecoins, memecoins, and exchange coins — slumped even further, by 4.2%. Smart contract platforms were particularly affected, with Solana, SUI, and Avalanche losing 6.3%, 7.8%, and 7.3% respectively. Crypto stocks also took a hit, especially Bitcoin mining firm Bitdeer (BTDR), down 8.3% on the day after previously rising 132% from April 16 to May 21. Marathon Digital Holdings (MSTR) slid 2.7%, and Coinbase (COIN) dropped 1.3%.

The downturn wasn’t limited to crypto. The S&P 500 and Nasdaq fell by 1% and 1.5% respectively, while gold lost 0.7%.

U.S.-China tariff clash: Round 2? Behind the price action was the resurgence of U.S. trade tensions following an agreement reached earlier this month. Concerns arose after President Donald Trump accused China in a post on Truth Social of “violating” the tariff truce between the countries. Meanwhile, Treasury Secretary Scott Bessent mentioned in a Fox News interview that talks had “stalled” with Chinese representatives. China, in response, urged the U.S. to “immediately correct its erroneous actions, cease discriminatory restrictions,” according to reports.

The cooling period between the U.S. and China had previously helped risk assets rally in May, giving Bitcoin a tailwind to reach a new record high. The re-escalation now poses a risk of unwinding some of those gains.