Bitcoin has reversed, falling 3.45% to $111,308 on Tuesday as US-China trade war fears continue to spook global markets. European stocks and US futures also slipped, reflecting heightened uncertainty ahead of the US banking earnings season.
The selloff comes after President Donald Trump announced plans to impose an additional 100% tariff on Chinese goods, prompting Beijing to warn it was ready to “fight to the end.” A Chinese commerce ministry spokesperson reiterated that while negotiations remain possible, the country is prepared for escalation if needed.
The renewed trade tensions have rattled investors, and in the crypto market, volatility is already showing signs of intensifying. CryptoQuant CEO Ki Young Ju highlighted that new Bitcoin whales are now in the red, with unrealised profits turning into losses as bitcoin fell from its all-time high of $126,198. He cautioned that while the indicator doesn’t predict price direction, historically, similar conditions have either triggered accumulation or deeper selloffs.
US-based Bitcoin ETFs recorded a net outflow of $326.4 million on Monday, primarily from GBTC, BITB, and FBTC, partially offset by a $60.4 million inflow into BlackRock’s IBIT. Ethereum-based products faced even larger outflows of $428.5 million, led by ETHA’s $310.1 million selloff, sending ETH down 4% to $3,990.
Stablecoin movements on major exchanges added to the unease. Binance saw a net outflow of just over $190 million in USDT over 24 hours, a reversal from last week’s inflow of $1.4 billion. Such outflows typically signal fear and uncertainty among market participants, often preceding broader market selloffs.