Bitcoin and other major cryptocurrencies slipped over the weekend as renewed tariff uncertainty from the Trump administration unsettled investor sentiment. The leading digital asset dropped more than 2% during Sunday’s Asia trading session, hitting a low of $83,482 before bouncing slightly ahead of the new trading week.
The volatility followed a weekend of conflicting statements from Washington about whether the U.S. would impose fresh tariffs on Chinese electronics, including smartphones, laptops, and semiconductors. The lack of clarity sparked investor concerns about inflation and supply chain disruptions, creating fresh headwinds for risk assets like crypto.
Ethereum also dipped, falling below the $1,600 mark amid lackluster performance across the altcoin sector. CoinGecko data revealed a mixed landscape, with several smaller tokens lagging behind equities in the broader market rebound.
While major U.S. stock indices managed modest gains on optimism that a broader trade resolution might still be reached, cryptocurrencies appeared more reactive to inflationary threats—highlighting their growing sensitivity to global macroeconomic shifts.
Heading into Monday, Bitcoin recovered some ground, trading around $85,210 at the time of reporting. Ethereum also managed to reclaim the $1,600 level, but market momentum remained cautious.
Trump Clarifies Tariff Stance, Confirms Steeper Tech Levies
Late Sunday, President Trump addressed the confusion directly on Truth Social, calling out what he described as “misinterpretations” of his administration’s earlier trade announcements. While Friday’s press release had suggested some electronics were exempt from a new 10% reciprocal tariff, Trump clarified that those same products would instead face a separate 20% levy, citing national security priorities and efforts to combat fentanyl trafficking.
“NOBODY is getting ‘off the hook,’ especially not China, which, by far, treats us the worst,” Trump wrote.
Commerce Secretary Howard Lutnick reinforced the administration’s position, noting that more targeted tariffs are likely within the next two months—specifically on high-tech consumer goods and semiconductor components. The evolving trade posture continues to pressure markets that rely on Asian manufacturing, while signaling further instability for macro-sensitive assets like crypto.
Crypto Lags Equities as Traders Reassess Risk
Despite a bounce in equity futures, cryptocurrencies have yet to find strong footing. Nasdaq 100 and S&P 500 futures climbed over 1% and 0.7% respectively in early Monday trading, as relief over the temporary pause in blanket tariffs spread across traditional markets. But Bitcoin and Ethereum remained subdued, pointing to an ongoing divergence between digital and traditional risk assets.
Analysts say the shift marks a dramatic reversal from last week’s bullish sentiment, which had been fueled by softer inflation data. That optimism has since been overshadowed by resurgent geopolitical tensions and falling institutional interest, as shown by declining inflows into U.S.-listed crypto ETFs.
Technical traders are closely monitoring the $81,000 mark for Bitcoin—a key support level. A decisive break below it could trigger liquidations among over-leveraged positions, deepening the current market downturn.
Still, some view the volatility as a sign of crypto’s maturation. Arthur Azizov, CEO of B2 Venture, argued that Bitcoin’s sensitivity to global trade and monetary policy highlights its role as a rising reserve asset. Michele Crivelli of NexBridge added that blockchain’s decentralized architecture could offer longer-term resilience amid monetary disruptions, even if price action remains choppy in the near term.
Quick Facts
- Bitcoin fell over 2% to $83,482 following mixed tariff signals from the Trump administration.
- President Trump clarified that some electronics would still face a separate 20% levy tied to national security concerns.
- Equity markets rebounded while crypto remained weak, with analysts eyeing $81,000 as a critical support level for BTC.
- Renewed geopolitical tension and declining ETF inflows are adding short-term pressure to an already fragile crypto market.
