XRP, Bitcoin Prices Slide. Why China's Trump Tariffs Standoff Is Hitting Cryptos. — Barrons.com

By George GloverBitcoin was struggling for direction Tuesday as investors weighed up how President Donald Trump's trade policies will affect cryptocurrency prices.The world's largest token climbed when Trump paused plans for 25% tariffs on goods from Mexico and Canada, then slid after China said it would hit back with levies of its own.Bitcoin was down 2.5% to $98,691 early Tuesday, according to data from the crypto exchange Kraken. Ethereum slid 3.8% to $2,710, and XRP fell 6.6% to $2.52.The tokens slid after Beijing said it would impose retaliatory tariffs of up to 15% on select American goods, in response to Trump's plan to hike taxes on Chinese imports. Because cryptos are seen as riskier assets, they tend to drop during times of uncertainty.Bitget Research analyst Ryan Lee said in a research note that Trump's Monday policy blitz would likely be a "double-edged sword" for digital assets.He said the establishment of a U.S. sovereign-wealth fund may boost crypto prices over the longer term, but added that there was a risk trade tensions "could trigger broad market selloffs, with Bitcoin not entirely immune to such corrections."Write to George Glover at [email protected] content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.