Crypto Markets Fall as U.S.-China Tensions Rise Again: Bitcoin Dips to $103,700

Crypto markets plunged Friday as rising tensions between the U.S. and China reignited investor fears. Bitcoin fell over 2% to $103,700, while major altcoins took bigger hits: Solana dropped 6.3%, Sui fell 7.8%, and Avalanche slid 7.3%. Crypto-related stocks like Bitdeer (BTDR) lost 8.3%, MicroStrategy (MSTR) dipped 2.7%, and Coinbase (COIN) declined 1.3%.

Tariff Tensions Shake Crypto Confidence

President Trump accused China of violating tariff agreements, and Treasury Secretary Scott Bessent said talks had “stalled,” adding to the market's unease. In response, China urged the U.S. to correct its "discriminatory actions," according to BBC reports.

Earlier hopes for a trade resolution had fueled crypto rallies, but these renewed disputes have quickly reversed that optimism. Bitcoin is down 6% over the past week. If BTC breaks below $104,584 support, it may test $100,694. Bulls need to reclaim $106,726 to prevent deeper corrections.

Memecoins Crash, Futures De-Risk

The memecoin market shed $10 billion in value in just a week, plunging from $74B to $64B. Meanwhile, $11.4 billion in Bitcoin and Ethereum options expired, triggering high volatility.

More than 217,000 traders were liquidated recently, totaling $800 million in liquidations. Bitcoin futures open interest dropped by $3.7 billion as BTC fell from $108K to $104.5K.

Still, data from CryptoQuant suggests the selloff is less severe than 2024 market tops, indicating a healthy correction. If Bitcoin drops below $100K, the $96K level is expected to act as strong support. Analyst Altcoin Sherpa anticipates a bounce from the $102K–$104.5K support zone, possibly pushing BTC back above $107K in the near term.