US-China Tariff Talks Stall, Bitcoin Slides to $105K Amid Market Uncertainty

Bitcoin’s recent rally hit a speed bump this week, falling from its all-time high of US$111,000 to US$105,000, as trade tensions between the United States and China reignited. The downturn follows news that tariff negotiations between the two economic superpowers have come to a halt.

US Treasury Secretary Scott Bessent confirmed the suspension of talks during a press briefing on Wednesday, stating:

“I would say the discussions have somewhat stalled. But I do believe we’ll be resuming talks with them in the coming weeks.”

Despite the current impasse, Bessent remains optimistic that direct communication between President Donald Trump and President Xi Jinping could take place soon, potentially via a phone call that might help ease growing market tension.

The stalemate adds to an already volatile global economic environment. Just last week, the Court of International Trade in Manhattan ruled that the tariffs imposed by President Trump on a wide range of foreign imports — including those from China and Indonesia — were unlawful. The court’s decision followed months of legal scrutiny and market turbulence caused by the sweeping trade measures.

Trump’s tariffs, originally introduced as part of a broader strategy to protect American industry, ended up rattling global financial markets, particularly equities and cryptocurrencies. Bitcoin, often seen as a hedge against inflation and economic uncertainty, has nonetheless proven vulnerable to macroeconomic stress and geopolitical instability.

Since the announcement, investors have shown signs of caution, with trading volume dipping slightly across major exchanges. Market analysts believe the latest correction is a result of profit-taking following Bitcoin’s parabolic rise in the past month.

“While a $6,000 drop may seem significant, it’s important to note that Bitcoin is still trading well above its previous cycle highs,” said Eliza Tran, an economist at Sydney-based firm CryptoLens. “We’re seeing a natural cooling-off period combined with geopolitical pressure.”

The delay in tariff talks comes at a delicate time, especially with ongoing debates around global trade reform, monetary tightening, and crypto regulation. Market observers warn that continued uncertainty between the US and China may trigger further capital flight into alternative assets like gold and stablecoins.

Some analysts, however, see this as a short-term correction rather than the start of a larger downtrend. They point to Bitcoin’s institutional adoption, increased retail interest, and the recent surge in crypto ETF approvals as long-term bullish indicators.

Despite short-term turbulence, Bitcoin remains a focal point for global investors navigating uncertain economic terrain. Whether the US and China can reignite trade talks will be closely watched — not only by diplomats, but by digital asset traders around the world.

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