TLDR
US Treasury Secretary Scott Bessent stated that US-China trade talks have “stalled”
US Appeals Court reinstated Trump’s “reciprocal tariffs” after they were initially struck down
Altcoins like Ethereum, XRP, and Dogecoin corrected 3-8% amid trade war uncertainty
The crypto market saw $680 million in liquidations in 24 hours
Bitcoin reached a new all-time high above $111,000 but has since dropped to around $107,000
The renewed threat of escalating trade tensions between the United States and China has sent ripples through the cryptocurrency market, with altcoins bearing the brunt of the correction. US Treasury Secretary Scott Bessent confirmed that trade talks between the world’s two largest economies have hit a roadblock, describing negotiations as “stalled” during a recent interview with Fox Business.
The pause in progress comes after earlier signs of easing tensions this month. Bessent had visited Switzerland for discussions with Chinese officials, which had led to both nations stepping back from imposing tariffs exceeding 100% on each other’s goods. Despite the current impasse, Bessent expressed confidence that further negotiations with Chinese representatives would resume “in the next few weeks.”
Adding to market uncertainty, a US Appeals Court has reinstated former President Donald Trump’s “reciprocal tariffs” just one day after they were struck down by the US Court of International Trade, which had cited an overreach of presidential power. This legal back-and-forth has reintroduced volatility to global markets, as the decision could potentially be appealed to the US Supreme Court.
Crypto Market Reaction
The resurgence of US-China trade war concerns has had an immediate impact on cryptocurrency prices. Ethereum (ETH) dropped 3%, falling below the $2,700 mark and erasing its weekly gains. Other altcoins experienced even steeper declines, with Cardano (ADA), Sui (SUI), and XRP correcting between 3-5%.
Dogecoin (DOGE) was among the hardest hit, plummeting more than 8%. The market turmoil resulted in $680 million in liquidations across the crypto sector in just 24 hours, according to Coinglass data.
Bitcoin, while more resilient than altcoins, has also felt the effects of the market uncertainty. After recently touching a new all-time high above $111,000, BTC has pulled back to around $107,000. Despite this 3.9% drop from its peak, Bitcoin still maintains a monthly gain of over 10%.
Institutional vs. Retail Behavior
On-chain analysis reveals interesting patterns in investor behavior during this period of market volatility. Large Bitcoin holders, specifically addresses containing between 1,000 and 10,000 BTC (excluding exchanges and miners), have been steadily increasing their holdings. This suggests growing confidence among institutional investors despite the macroeconomic concerns.
Meanwhile, retail participation remains relatively low. According to analysis from Avocado Onchain on CryptoQuant’s platform, the percentage of Unspent Transaction Outputs (UTXOs) held by investors with a holding period of less than one month is currently around 20%, well below the historical threshold seen near previous market tops.
Large holders are accumulating.
Addresses holding 1K–10K BTC (excl. exchanges & miners) are rising, a sign of growing investor confidence.
Historically linked to higher prices. pic.twitter.com/vCCml3GfHB
— CryptoQuant.com (@cryptoquant_com) May 29, 2025
During earlier bull cycles, new investor participation often surged past 50%. The analyst warns that without increased participation from newer investors, the market may struggle to maintain upward momentum, even as Bitcoin reaches new highs.
The Japanese bond market is also showing signs of heating up, with yields crossing 3% and hitting a two-decade high, adding another layer of complexity to the global financial landscape that could impact crypto assets.
Long-term holders appear to be selling some of their Bitcoin, but the influx of new investors remains sluggish. This dynamic has historically limited momentum in previous market cycles and could potentially cap Bitcoin’s upside potential if the trend continues.
The current market represents a transitional phase, with institutional accumulation providing price support while retail investors largely remain on the sidelines. The next few weeks of US-China trade negotiations may prove crucial for both global markets and the cryptocurrency sector.
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