The value of Bitcoin and other digital assets dropped sharply on Tuesday due to the escalating tensions between the US and China. The US and China imposed fresh tariffs on each other, leading to a surge in selling pressure among major cryptocurrencies. Bitcoin fell as much as 3.6% to $98,199, while Ether and Solana also experienced losses. Despite earlier gains, digital assets were unable to recover as the trade tensions continued to rise, affecting global markets.
Source: https://www.bloomberg.com/news/articles/2025-02-04/bitcoin-btc-falls-as-us-china-trade-war-escalates-rattle-markets