Bitcoin’s price dropped again, falling below $108,000 as worries grow over rising tensions between the United States and China. The trade dispute between the two biggest economies has made investors nervous, pushing many to sell risky assets like crypto.
Bitcoin is now trading around $107,800, after briefly jumping to $111,600 earlier. The coin has been moving up and down quickly as traders react to the changing political situation.
According to Jeff Mei, Chief Operating Officer at BTSE, “macro concerns are driving day-to-day changes in the market.” He said traders are reducing their risk ahead of the upcoming meeting between U.S. President Trump and China’s President Xi Jinping. Mei added that even if they reach a deal, the market will stay unstable for a while.
The trade fight between the U.S. and China has been heating up again, with new tariffs and export bans causing uncertainty in global markets. Every time the tension grows, Bitcoin’s price tends to drop as investors avoid risky assets.
Earlier this month, Bitcoin fell to $104,782 after the U.S. announced new tariffs on Chinese goods, wiping out more than $150 billion from the crypto market.
The sell-off has also caused big losses for traders. Data from CoinGlass shows that over $322 million worth of crypto positions were liquidated in the past day. Earlier, on October 11, a huge $19 billion liquidation hit the market, the biggest in crypto history.
The drop didn’t stop with Bitcoin. Ethereum is down nearly 5%, BNB lost 6%, and Solana dropped 4.5%. Crypto exchange-traded funds (ETFs) also saw large outflows, with $40.5 million leaving Bitcoin funds and $145.7 million exiting Ethereum funds. Investor fear is rising, with the Fear and Greed Index now at 34, showing growing caution.
Despite all the tension, some analysts still believe Bitcoin has a bright future. Traders are now watching for new inflation data that could affect the U.S. Federal Reserve’s interest rate decision. The CME FedWatch Tool shows a 98.9% chance of a small rate cut later this month, which could help crypto prices recover in the short term.
However, analyst Willy Woo warned that the next crypto downturn might come from a global economic slowdown, not just a market cycle. Whether Bitcoin will act more like gold or tech stocks in that case remains to be seen, but for now, trade politics continue to shape its every move.
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