Bitcoin’s price fell on Tuesday, losing ground after a weekend rally as concerns over worsening geopolitical tensions across the globe dented risk sentiment, as did anticipation of more economic cues.
The world’s largest cryptocurrency fell 1.4% to $3,106.6 by 01:10 ET (05:10 GMT), tracking overnight declines in stock markets.
China trade jitters, oil price spike dent sentiment Losses in crypto came in tow of broader losses across risk-driven markets, as sentiment was soured by a slew of geopolitical risks.
Canada imposed fresh trade tariffs on China, following similar measures from Europe and the U.S. and drawing Beijing’s ire. The move ramped up concerns over a renewed trade war with the West, which bodes poorly for the world’s biggest economies.
A spike in oil prices also spooked markets, as an Israel-Gaza ceasefire showed little signs of materializing, while a row in Libya over the central bank’s leadership saw all oil production in the country grind to a halt.
The increased geopolitical risks offset recent cheer over lower U.S. interest rates, sparking losses across stock and crypto markets. Gold saw some safe haven demand, as did the dollar, which recovered from 13-month lows.
Rate cut bets remain in play But Bitcoin still retained a bulk of its gains made over the weekend, as dovish comments from the Federal Reserve cemented expectations for a September interest rate cut.
Traders were split over a 25 or 50 basis point reduction, CME Fedwatch showed.
The prospect of lower rates bodes well for speculative assets such as crypto, given that it frees up more liquidity that can be invested into the sector. This notion was a major driver of crypto’s 2021 bull run.
Bitcoin was also supported by some expectations of a friendlier regulatory environment in the U.S., after independent presidential candidate Robert F Kennedy Jr suspended his campaign and endorsed Republican frontrunner Donald Trump, who is also running on a pro-crypto platform.
Trump has maintained a much more favourable stance on crypto over Democratic candidate Kamala Harris, spurring bets that a Trump presidency will bring friendlier regulation.
Crypto price today: altcoins track Bitcoin losses Among broader crypto markets, altcoin prices also retreated on Tuesday, falling in tandem with Bitcoin.
World no. 2 token Ether fell 1.9% to $2,698.0.
SOL, ADA and XRP moved in a flat-to-low range, while MATIC shed 1.5%.
Among meme tokens, DOGE fell 2.4%.
