Bitcoin showed a slight increase on Tuesday, recovering some losses from the weekend as traders negotiated between profit-taking and ongoing uncertainty triggered by U.S. trade tariffs and broader economic risks.

Bitcoin’s Price Movements

After briefly falling to $103,000 over the weekend—down from nearly $112,000 earlier in May—Bitcoin ended Tuesday with a 0.5% increase, priced at $105,319.20. Former MicroStrategy’s acquisitions worth $75 million provided modest support, but the cryptocurrency has fluctuated within a $100K to $110K range amid conflicting signals.

Tariff-related Uncertainty Impacts Crypto Sentiment

Investment sentiment in cryptocurrencies often mirrors the broader risk appetite. With U.S.-China trade rhetoric escalating and no concrete resolutions emerging, market caution prevailed:

• U.S.-China Tariff Threats: Renewed concerns about heightened tariffs can threaten global growth and dampen appetite for riskier assets.

• Geopolitical Factors: Ongoing tensions in U.S.-Iran nuclear negotiations and the unresolved Russia-Ukraine conflict have added to the prevailing uncertainty.

Even though Bitcoin has no direct ties to trade policy, its speculative nature makes it sensitive to fluctuations in global risk sentiment.

What to Watch Moving Forward

1. Developments on U.S. Tariffs: Any fresh announcements or negotiations may significantly impact risk markets and crypto.

2. Key Macroeconomic Data: Essential U.S. indicators (e.g., PMI, unemployment claims) will shape Fed policy expectations and influence investor sentiment.

3. Institutional Purchases: Major acquisitions, such as MicroStrategy’s recent $75 million buy, can provide sporadic support but won’t overshadow macro headwinds.

By tracking trade policy and critical economic data, investors can better project the next phase of Bitcoin’s price movements.