Bitcoin inched higher on Tuesday, clawing back some losses sustained over the weekend, but crypto markets remained subdued amid escalating concerns over U.S. trade tariffs and their ripple effects on the global economy.
The flagship cryptocurrency had dipped to a weekend low near $103,000 following a sharp correction from its early May peak of nearly $112,000. This pullback reflected extended profit-taking after the recent rally.
Despite a $75 million Bitcoin purchase by Strategy (NASDAQ: MSTR), formerly MicroStrategy, market sentiment stayed muted, with traders hesitant to jump in without clearer positive catalysts. By 01:19 ET (05:19 GMT), Bitcoin was up 0.5%, trading at $105,319.2.
The restrained performance of Bitcoin largely mirrored weakness in broader risk-sensitive assets, as investors grappled with mounting geopolitical and economic tensions. Intensifying U.S.-China trade disputes raised doubts about any imminent resolution, extending tariffs and threatening global growth prospects.
Additional pressure came from faltering U.S.-Iran nuclear negotiations and persistent Russia-Ukraine conflicts, with recent ceasefire talks failing to yield breakthroughs. Although cryptocurrencies are not directly impacted by tariffs or geopolitical events, their speculative nature makes them vulnerable to shifts in market sentiment, a factor that has weighed on prices amid fading hopes for U.S. crypto-friendly regulations.
Meanwhile, tentative optimism surfaced from speculation about pro-crypto regulatory moves in Hong Kong, though this provided only marginal support.
Coinbase Global Inc (NASDAQ: COIN) was aware of a significant data breach months before publicly disclosing it. The leak, tied to an Indian outsourcing firm, allowed hackers to access customer information and demand a $20 million ransom, potentially costing Coinbase up to $400 million.
Beyond Bitcoin, altcoins posted modest recoveries after weekend declines. Ethereum rose 4.5% to $2,606.89, XRP gained 1.5% to $2.2030, while Solana and Cardano each climbed over 2%. Polygon added 1.6%, and among meme tokens, Dogecoin and $TRUMP rose 2.7% and 0.7%, respectively.
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