Bitcoin Price Declines: US-China Tension Continues to Have an Impact

Bitcoin price has recently experienced fluctuations and has declined again. In particular, Bitcoin, which has fallen below the $108,000 level, is significantly affecting investors' risk appetite. The effects of the meeting between U.S. President Donald Trump and Chinese leader Xi Jinping continue to be felt in the cryptocurrency markets.

Analysts point out that the trade tensions between these two countries play a decisive role in the pricing of cryptocurrencies like Bitcoin. Jeff Mei, Operations Director at BTSE, stated in an interview with The Block, “Macro concerns are currently driving the market. As long as the trade tensions between the U.S. and China continue, this volatility will also persist.” According to Mei, the recent price drop is due to investors taking precautionary measures in response to reduced risks ahead of the Trump-Xi meeting in South Korea.

Investor fears are also reflected in Crypto ETFs. According to SoSoValue data, there was an outflow of $40.5 million from Bitcoin ETFs and $145.7 million from Ethereum ETFs. Market observations show that Bitcoin funds experienced a $1.23 billion net outflow last week, marking one of the worst weeks in recent times. Considering all these situations, the Fear and Greed Index has dropped to 29, indicating a clear dominance of fear in the market.

Analyst Mei warns, “Today, cryptocurrency markets can reverse direction with a single statement or tweet. Therefore, investors should prioritize diversification and hedging strategies.” Key points for investors to closely monitor include the outcomes of the U.S.-China meeting and any potential improvements in market sentiment.