Bitcoin erases gains as geopolitical tensions continue ramping up

Bitcoin (BTC) fell more than 3% on April 10, slipping to a low of $78,416 as global markets unwound gains from soaring to an intraday high of $83,424 the previous day triggered by President Donald Trump’s announcement of a temporary tariff pause.

The retreat reflects growing investor skepticism over the durability of the previous day’s rally and rising fears of renewed trade hostilities with China.

The sell-off began after the White House clarified that while most tariffs would be paused for 90 days, a sharp escalation was planned afterward, with rates on Chinese imports set to rise to 145%.

The announcement rattled global markets that had interpreted the initial move as a de-escalation of trade tensions. Instead, it was increasingly viewed as a strategic delay that could deepen economic uncertainty.

Ethereum (ETH), the second-largest crypto by market value, declined nearly 7% to a low of $1,470 amid broader weakness in digital assets. XRP, which briefly traded above $2, fell back more than 5% to $1.94.

Other major altcoins, including Solana (SOL) and Avalanche (AVAX), also posted similar percentage losses as sentiment turned risk-off.

Traditional financial markets also gave up ground. The Dow Jones Industrial Average was down 2.2% as of press time, the S&P 500 lost 4.2%, and the Nasdaq Composite was down 3.71% as volatility returned in force.

Technology and semiconductor stocks, many of which are exposed to the Chinese supply chain, bore the brunt of the sell-off.

The broader risk-off mood came despite a softer US Consumer Price Index reading for March. Headline inflation fell 0.1% month-over-month, while the core rate, excluding food and energy, rose just 0.1%.

The data was seen as a positive signal for Federal Reserve doves, potentially opening the door to rate cuts later this year. However, investors largely shrugged off the inflation print in light of geopolitical concerns.

Crypto traders, who have increasingly priced in macro developments alongside blockchain-native catalysts, are watching for any new signals out of Washington or Beijing that could further influence capital flows.

Despite the pullback, Bitcoin remains up more than 40% year-to-date, driven by rising institutional demand, interest in spot ETFs, and growing adoption narratives around digital assets.

However, the day’s action highlights the fragile balance between bullish momentum and broader economic risks. With global trade policy once again in the spotlight, market participants are bracing for more turbulence ahead.

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