Major cryptocurrencies traded lower on Wednesday as escalating trade tensions between the US and China rattled investor sentiment.

At 10:59 AM IST, Bitcoin was down 2.6% at $83,338, while Ethereum dropped 4.8% to $1,564. The global crypto market cap declined by 2.36% to $2.64 trillion.

“Bitcoin’s price surged to $86,300 following a short squeeze but later slipped below $84,000. The fall likely followed a dip in Nvidia’s stock after the US banned H20 chip exports to China,” said Vikram Subburaj, CEO of Giottus. “Despite $38 million in spotBitcoin ETF inflows, tariff-related uncertainty continues to weigh on sentiment.”

Overnight, US President Donald Trump ordered a probe into potential new tariffs on critical minerals, adding to ongoing reviews of pharmaceutical and semiconductor imports.Meanwhile, Beijing has responded with its own set of measures. Chinese authorities have reportedly told airlines to suspend deliveries of Boeing aircraft and halt purchases of related equipment from US firms.

Despite the broader decline, some institutional trends remain positive.

“The crypto market is navigating a critical consolidation phase. After 12 straight days of outflows, spot Bitcoin ETFs recorded a net inflow on April 14, led by BlackRock,” said Riya Sehgal, Research Analyst at Delta Exchange.

She noted that Bitcoin whale accumulation has reached its highest level since April 2024, with over 2,000 addresses now holding between 1,000 to 10,000 BTC. “This suggests long-term positioning by institutional and high-net-worth investors despite near-term resistance.”

Solana led the altcoin decline, falling 4.8%, followed by Cardano down 5.7%, Dogecoin 4.2%, and XRP 3.7%. Chainlink, Avalanche, and Sui also dropped between 2.5% and 5.5%. BNB slipped 1.3%.

Bitcoin’s market cap dropped to $1.654 trillion, with its dominance down to 62.91%. Daily trading volume fell 7.3% to $27.07 billion. Stablecoins accounted for 92.75% of total crypto trading activity, reaching $68.25 billion, according to CoinMarketCap.

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“The RSI is at 41, reflecting neutral momentum, while a bearish MACD crossover suggests short-term pressure. Stochastic levels are overbought, indicating a potential pullback. Support lies at $78,000 and resistance at $85,700,” he added.

Despite the cautious sentiment and “extreme fear” in the market, long-term fundamentals remain strong, supported by institutional inflows and macroeconomic trends. Traders are advised to wait for a breakout or breakdown to gauge the next move.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)