Trade Tensions and Economic Uncertainty Weigh on the Crypto Market
Macroeconomic concerns further dampened investor sentiment as U.S.-China trade negotiations showed signs of stalling.
Treasury Secretary Scott Bessent confirmed during a Fox News interview that trade talks had hit roadblocks. Bessent stated that the complexity and magnitude of the negotiations would require direct communication between both country leaders to reach an agreement.
The uncertainty surrounding trade policies and potential tariff reinstatements triggered a risk-off sentiment among investors. This led to reduced appetite for speculative assets like cryptocurrencies as market participants sought safer investment options.
The crypto market also faced technical challenges as key support levels were breached during the decline. Bitcoin price action broke below both its 50-day and 200-day moving averages, signaling a potential shift toward bearish momentum in the short term.
These technical breakdowns often encourage additional selling as algorithmic trading systems and technical analysts interpret the signals as negative price indicators. The fundamental pressures and technical weaknesses have created a challenging environment for crypto bulls attempting to defend key price levels.
