Bitcoin Dips Under $95K Amid Trade Talks Uncertainty
Bitcoin slid below the key $95,000 threshold on Monday, extending a mild pullback as investors grapple with ongoing trade negotiations and economic uncertainty. In holiday‑thinned trading, Bitcoin fell 1.7% to $94,437.80 by 01:24 ET (05:24 GMT), its lowest level recently.
Holiday-Thinned Trade and Dull Volumes
The start of the week coincided with multiple market holidays in Asia, which kept trading volumes muted and exacerbated price swings on relatively light order books. With fewer counterparties active, even modest sell orders pushed Bitcoin below support, underscoring the fragility of price levels in thin markets.
Focus on U.S.–China Trade Negotiations
Investors are now seeking clearer signals on whether the much‑anticipated U.S.–China trade talks will materialize. Late‑April optimism—sparked by comments that negotiations were forthcoming—has waned after U.S. President Trump said he has no immediate plans for formal discussions with President Xi Jinping, though some dialogue continues. That ambiguity has weighed on risk assets, including crypto.
Rangebound Since Late April
Over the past week, Bitcoin has oscillated between roughly $92,000 and $97,000, entering a holding pattern as its late‑April rebound lost steam. Traders note that capital flows into U.S.-traded spot Bitcoin ETFs also cooled after outsized April gains, reducing another source of upward support.
Muted Year-to-Date Performance
Despite recouping much of its 2025 losses during the April rally, Bitcoin remains muted on a year‑to‑date basis, with broader risk appetite denting momentum amid tariff‑related fears. The token’s strong late‑2024 performance has given way to a more cautious stance, as investors balance bullish long‑term views with near‑term macro headwinds.
Tariffs, Risk Appetite, and Crypto Sentiment
While cryptocurrencies are inherently decentralized and largely immune to direct tariff effects, market‑wide negative sentiment stemming from U.S. tariffs tends to suppress risk assets, including digital tokens. Investors often rotate out of high‑beta sectors when geopolitical or trade tensions escalate, and crypto has not been spared.
Wider Market Ripples
The selling pressure also rippled through U.S.-listed crypto stocks. On April 7, Bitcoin’s earlier drop to a 2025 low triggered a sell‑off in firms like MicroStrategy (down 7%) and Coinbase (down 6%), as investors braced for a broader risk‑off environment fueled by tariff concerns and warnings of an “economic nuclear winter” from billionaire Bill Ackman.
What’s Next for Bitcoin?
Technical analysts highlight the importance of $92,000 as a critical support zone. A break below that level could accelerate momentum toward lower targets, while a successful hold may set the stage for a late‑May push back toward $97,000–$100,000, assuming trade talks advance and ETF inflows resume.
In the near term, Bitcoin’s trajectory will hinge on clarity around U.S.–China relations, Fed policy signals, and macro data. For now, the world’s largest cryptocurrency remains range‑bound, with traders closely watching both political developments and technical levels for the next hint of direction.
