Bitcoin drops from record highs

The world’s biggest crypto dropped 4% to $110,770

Bitcoin dropped on Tuesday, cutting short a recent rebound as markets remained largely risk-averse amid heightened concerns over a renewed trade war between China and the U.S.

Broader crypto markets also moved lower, remaining on the back foot after U.S. President Donald Trump’s announcement of 100% tariffs on China wiped out some $500 billion in crypto market capitalization in a matter of days.

Bitcoin was at the heart of this rout, tumbling sharply from a $126,000 record high hit last week. The world’s biggest crypto dropped 4% to $110,770 by 13:25 GMT.

Demand for the world’s largest crypto was largely supplanted by demand for safe havens such as gold, which hit another record high on Tuesday.

While crypto markets did take some support from U.S. officials offering conciliatory comments on China, risk appetite still remained largely off.

Bitcoin plunged as low as $103,800 over the weekend after Trump’s initial announcement of additional tariffs against China.

While the world’s biggest crypto did recover to reach as high as $115,000 on Monday, it cut short this rebound amid few signs of improving China-U.S. relations.

Beijing said on Tuesday that it was ready to “fight to the end” in a trade war with Washington, while also accusing the U.S. of discriminatory practices.

The latest trade tensions– which threaten to undermine an earlier framework deal between Washington and Beijing– largely stem from U.S. objection to China introducing stricter export controls on its rare earth industry.

China said on Tuesday that the controls were justified, and signalled little intent to acquiesce to U.S. demands. While Beijing did confirm that working-level talks were ongoing with Washington, it warned against the imposition of more trade tariffs.