Bitcoin Price Steadies Amid Trade War Tensions as MicroStrategy Buys More BTC

Bitcoin Price Steadies Amid Trade War Tensions as MicroStrategy Buys More BTC

Bitcoin showed modest gains on Monday, rising 0.6% to $84,521.0, as risk sentiment improved slightly amid U.S. tariff exemptions on certain Chinese goods. However, the escalating U.S.-China trade war continued to weigh on investor confidence, limiting Bitcoin's recovery from recent lows.

The cryptocurrency had earlier plummeted to $74,000 but rebounded after the White House announced exemptions for electronic imports from China, which account for a significant portion of China's trade surplus with the U.S. Despite this relief, President Trump indicated that additional tariffs on electronics and semiconductors are forthcoming, keeping traders on edge.

MicroStrategy Expands Bitcoin Holdings

Michael Saylor, executive chairman of MicroStrategy (NASDAQ:MSTR), hinted at further Bitcoin purchases despite the company reporting a $5.9 billion unrealized loss on its digital asset holdings. MicroStrategy recently acquired an additional 3,459 BTC for $285.8 million, bringing its total Bitcoin holdings to 531,644 coins. This represents over 2.5% of Bitcoin's capped 21 million supply, with an average purchase price of $67,556 per BTC.

The latest purchase was funded through the sale of nearly 960,000 shares of MicroStrategy's class A common stock, raising approximately $285.7 million. The company still has $2.08 billion in shares available for sale under its ongoing issuance program.

Broader Crypto Market Sees Mixed Movements

While Bitcoin stabilized, other cryptocurrencies showed mixed performance. Ether surged 5.8% to $1,665.04, while Solana and Cardano also saw gains of 3.2% and 0.7%, respectively. However, Polygon dipped 1.2%, and XRP remained flat at $2.14. Meme tokens were equally divided, with Dogecoin climbing 1.3% and $TRUMP falling 1.6%.

The crypto market remains volatile amid heightened economic uncertainty, with traders closely monitoring developments in the U.S.-China trade war and growing concerns over a potential U.S. recession.