The crypto market declined midweek amid renewed tensions between the United States and China. U.S. President Donald Trump threatened to suspend imports of cooking oil from China, a move that raised concerns about the potential reemergence of a trade war between the two nations.
The statement sparked concerns across global markets and prompted investors to move away from risk assets, including cryptocurrencies. Bitcoin dropped sharply to around US$110,000, while Ethereum, XRP, and Dogecoin also fell between 3% to 5% over the past 24 hours.
Pressure from Sell-Offs and Economic Uncertainty
Analysts suggest that a mix of profit-taking and growing concerns about global economic prospects triggered the decline. The situation was further exacerbated by selling pressure in the derivatives market, where many leveraged positions were liquidated after prices fell below key technical levels.
Despite the correction, some market participants view the movement as relatively healthy given the sharp rally in crypto prices over recent weeks.
Crypto Bill for Retirement Programs Gains Momentum
Meanwhile, another development came from Washington. A Republican lawmaker proposed a bill to formalize Trump’s executive order on allowing digital asset investments in 401(k) retirement programs into federal law.
If passed, the legislation would enable retirement program providers to include cryptocurrencies as one of the investment options. However, some experts argue that stronger legal guidance and investor protections are needed before such policies can be widely implemented.
Market Direction Still Uncertain
The combination of geopolitical factors and new regulatory discussions has created uncertainty in the crypto market. Although prices have weakened, interest in digital assets remains high—especially if upcoming policies can provide greater legitimacy and legal clarity for the crypto industry in the United States.
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