Bitcoin Price Drops to Around $98,000 on Global Exchanges Amid Ongoing US-China Trade Tensions

Bitcoin's price dropped by 1.88 percent in the last 24 hours, trading at $98,110 (around Rs. 85.4 lakh) on February 5, according to CoinMarketCap. Earlier this week, the price of Bitcoin fell after US President Donald Trump announced new tariffs on imports from China, Canada, and Mexico. However, with the US President's Canada and Mexico tariffs on hold for a month, the price of BTC is climbing again. On Monday, Bitcoin was trading at $94,300 (around Rs. 82 lakh). On Indian exchanges, BTC dropped by under two percent, reaching $104,890 (around Rs. 91.4 lakh).

“Bitcoin had a volatile day, briefly crossing $100,000 after President Trump eased trade tensions by pausing tariff threats on Canada and Mexico. The rally, however, didn't last long. China hit back with new tariffs on US goods, including coal, LNG, crude oil, and certain vehicles, reigniting trade war concerns,” the CoinSwitch Markets Desk told Gadgets 360. “The renewed uncertainty sent Bitcoin sliding back to $98,000 as market sentiment turned cautious. Adding to the jitters, crypto czar David Sacks told reporters that the US President had asked him to assess the idea of a strategic Bitcoin reserve, leaving investors speculating about potential policy shifts.”

The price of Ether dropped by 1.07 percent on international exchanges on Wednesday. According to CoinMarketCap, ETH is trading at $2,715 (roughly Rs. 2.36 lakh) on global platforms. The asset showed a similar trajectory on Indian exchanges like CoinDCX and Giottus. With a loss of over one percent, ETH is trading at $2,905 (roughly Rs. 2.53 lakh) on Indian exchanges.

“Traders must trade carefully, as the global circumstances can turn sharply on their heads, led by unexpected volatility. The sentiments swing between fear and greed. As the US-China trade wars unfold with new regulations taking shape, the crypto market sits at the juncture of becoming both a hedge against inflation and a worrying risk in uncertain times,” Avinash Shekhar, Co-Founder and CEO of Pi42 told Gadgets 360.

The crypto price tracker by Gadgets 360 showed that the prices of most cryptocurrencies were down on Wednesday. These include Dogecoin, Cardano, Avalanche, Chainlink, Tether, and Binance Coin. Shiba Inu, Polkadot, Bitcoin Cash, Near Protocol, and Cronos were also down on Wednesday.

The overall crypto market cap slipped by 2.69 percent over the past 24 hours. Presently, the valuation of the sector stands at $3.22 trillion (roughly Rs. 2,80,59,241 crore), as per data by CoinMarketCap.

Iota, Flex, Status, and Braintrust rose in value, unlike most other digital assets.

“A Bipartisan working group has been formed in the US to create a crypto-regulatory framework, while the stablecoin bill has been introduced to strengthen the US dollar, and the probabilities of a ‘strategic Bitcoin reserve' will be evaluated. With this, the optimism around the crypto markets is expected to rise along with liquidity as Tether continues to mint billions of USDT to increase the circulating supply.” the CoinDCX research team told Gadgets 360.

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