XRP News Today: Bitcoin Drops 1.8% Amid U.S.-China Trade War Tensions

Cryptocurrency markets experienced significant volatility on Friday, driven by renewed tensions in the U.S.-China trade war. Bitcoin (BTC), which had reached an all-time high of $111,814 the previous week, saw a sharp decline of 1.8%, trading at $104,654 at the time of reporting. The drop was exacerbated by President Donald Trump's accusations that China had violated the tariff agreement between the two nations, though specific details were not provided. This escalation was further compounded by Treasury Secretary Scott Bessent's statement that talks with Chinese officials had "stalled," adding to the uncertainty. China responded by advising the U.S. to correct its actions and cease discriminatory restrictions.

Bitcoin's ability to maintain the psychologically significant $100,000 level will be crucial in the near term, as the cryptocurrency navigates through the macroeconomic turmoil. Other major cryptocurrencies, including Ripple’s XRP, Solana (SOL), and Dogecoin (DOGE), also faced substantial losses. XRP dropped by 4.1%, SOL by 3.4%, and DOGE by 8.8% over the past 24 hours, reflecting the broader market sentiment affected by trade frictions. The de-escalation of the U.S.-Sino trade war had previously boosted risk assets in May, contributing to Bitcoin's new lifetime peak above $111,800. However, the renewed trade tensions now pose a risk to these gains.

Despite the market volatility, the demand for Bitcoin remains robust. BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest spot BTC exchange-traded fund (ETF) by assets under management, has continued to attract billions in investor money. This is driven by Bitcoin's growing appeal as a haven asset amidst market volatility. The combined U.S. spot BTC ETFs have registered nearly $5.4 billion in total net flows this month, up from $2.97 billion in April, according to data from SoSoVale. This indicates that investors are still bullish on Bitcoin, viewing it as a safe haven in uncertain economic times.