Tensions Between the U.S. and China Flare Up Again – Altcoins Take the Hardest Hit

Trade relations between the United States and China have taken another blow. After U.S. Treasury Secretary Scott Bessent revealed that negotiations between the two economic giants have been put on hold, global markets turned uneasy—and the crypto sector was no exception. Altcoins in particular came under intense selling pressure, leading the correction across digital assets.

Talks Stalled, Trade War May Reignite In an interview with Fox Business, Bessent stated that discussions had “somewhat stalled.” Earlier this month, there had been signs of relief as both sides backed off from imposing tariffs over 100% on each other’s goods. However, the latest developments have dampened that optimism. At the beginning of May, Bessent met with Chinese officials in Switzerland to discuss trade relations. He now suggests that further negotiations might resume “in the coming weeks.”

Legal Twist: Trump Tariffs Reinstated, Market Volatility Returns Just one day after the U.S. Court of International Trade invalidated Trump-era “reciprocal tariffs” due to presidential overreach, a U.S. appeals court reversed that decision—reinstating the tariffs and injecting new volatility into the markets. Whether the case will escalate to the U.S. Supreme Court is still unknown. Both parties may request a review, but the court is not obligated to hear the case.

Altcoins Bleed as Market Reacts The renewed uncertainty surrounding the U.S.-China trade conflict has shaken the crypto market, with altcoins suffering the steepest losses: 🔹 Ethereum (ETH) dropped 3%, erasing weekly gains and falling back below $2,700.

🔹 XRP, Cardano (ADA), and SUI corrected by 3–5%.

🔹 Dogecoin (DOGE) plunged over 8%. Traditional markets weren’t spared either. Japanese bond yields climbed past 3%, marking a 20-year high. According to Coinglass, crypto markets saw more than $680 million in liquidations over the past 24 hours, underscoring the scale of the sell-off. Both Bitcoin and altcoins took heavy losses, leaving traders reeling.

🔍 Summary: Geopolitical Pressure Weighs on Crypto The return of Trump-era tariffs, suspended trade talks, and ongoing legal disputes have created a perfect storm for financial markets—and altcoins are feeling the brunt of it. Unless diplomatic relations between Washington and Beijing stabilize, the crypto market may continue to face downward pressure and heightened volatility.

#TradeWars , #china , #usa , #TradingCommunity , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies! Notice: ,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“