Investing.com-- Bitcoin moved little on Monday after logging heavy losses in weekend trade, as risk appetite was battered by heightened trade tensions between the U.S. and China and increased U.S. tariffs.
The world’s largest cryptocurrency was also nursing a week of losses after a recent run to record highs sparked extended profit-taking. Losses in Bitcoin came as exchange-traded fund flow data showed institutional money sold heavily in the last two trading days of May.
Bitcoin steadied at $104,640.3 by 01:45 ET (05:45 GMT). The world’s largest crypto has fallen steadily since hitting a record high of over $111,000 in late-May.
Losses in Bitcoin also pressured broader crypto prices.
Bitcoin rattled by risk aversion amid trade, economic jitters
Losses in Bitcoin traced those in broader risk-driven assets, as sentiment was dented by signs of increased strain between the U.S. and China over a recent trade deal.
U.S. President Donald Trump accused China of violating a trade deal reached in mid-May, while Beijing rebuked the accusations and warned that it will continue to act in its national interest.
This came just after Trump’s administration admitted that talks with China had stalled, further dampening bets that a lasting trade deal between the world’s biggest economies will be reached.
Adding to the trade and economic uncertainty, Trump over the weekend also said he will increase his tariffs on steel and aluminum imports to 50% from 25%, a move that could increase pressure on several facets of the U.S. economy.
While trade tariffs have little actual impact on crypto markets, their bearing on sentiment carries over into crypto, which is highly speculative in nature. Crypto markets and Bitcoin have moved largely in lock-step with Wall Street, especially technology stocks.
Bitcoin’s run to record highs was also in part driven by optimism over a U.S.-China trade deescalation.
But progress towards more U.S. crypto-friendly policy was seen as a key driver of Bitcoin in May. The crypto logged a 11% surge in May.
Crypto price today: altcoins extend weekend losses
Broader crypto prices fell slightly on Monday, extending losses from the weekend.
World no.2 crypto Ether fell 1.1% to $2,491.96, while XRP fell 0.2% to $2.1670.
Cardano and Solana fell about 0.3% and 0.1%, respectively, while Polygon shed 1.6%.
Among meme coins, $TRUMP fell 0.7%, while Dogecoin shed 0.1%.