Bitcoin Drops 2.1% to $83,811.0 Amid Trump Tariff Uncertainty

Bitcoin experienced a decline on Wednesday, erasing the modest gains it had made earlier in the week. The world's largest cryptocurrency fell by 2.1% to $83,811.0 by 09:54 ET (13:54 GMT). This drop came as investors sought clarity on U.S. President Donald Trump’s tariff policies, which have caused significant uncertainty in global markets.

The token had reached over $86,000 on Tuesday but was unable to maintain those gains. The broader implications of Trump’s fluctuating trade policy have been a major concern for investors. While the president has hinted at possible exemptions for certain tariffs, such as the 25% duty on foreign vehicle imports, his administration continues to pursue potential tariffs on semiconductor and pharmaceutical imports. Chinese goods remain subject to a cumulative 145% tariff, which has prompted a 125% retaliatory response from China.

This policy approach has dampened global risk appetite, leading to a decrease in enthusiasm for speculative assets like cryptocurrencies. Bitcoin, often viewed as a hedge during geopolitical tensions, appears to be losing some of its safe-haven appeal amid the mixed signals from Washington. Notably, gold, another safe-haven asset, was trading at a record high on Wednesday, highlighting the shift in investor sentiment towards more traditional safe havens.

Meanwhile, China is exploring new rules for handling seized cryptocurrencies as local governments grapple with a growing stockpile of tokens from criminal cases. With crypto trading banned on the mainland, authorities have turned to private firms to liquidate assets—a makeshift solution now drawing scrutiny. Legal experts and regulators are calling for clearer oversight, amid rising cases and speculation that China could mirror Trump’s proposed U.S. crypto reserve strategy. China’s holdings, estimated at $1.4 billion in bitcoin, rank the state among the world’s top crypto holders.

Most altcoins saw much steeper declines than Bitcoin after sessions of subdued moves. World no.2 crypto Ethereum dropped 4% to $1,570. World no. 3 crypto XRP slid 4.6% to $2.07. Solana declined 6.5%, and Cardano slumped 6%, while Polygon fell 3.4%. Among meme tokens, Dogecoin lost 4.7%, while $TRUMP was trading 3.4% lower.