The price of the major cryptocurrency reached $98,000, about 10% below its record high

Bitcoin and other digital assets faced a fresh wave of selling pressure on Tuesday, amid escalating trade tensions between the world’s two largest economies, as the United States and China imposed new tariffs on each other.

The largest cryptocurrency fell about 3.6% to $98,000, while other major cryptocurrencies, including Ethereum and Solana, lost some ground.

The decline came after China responded to Washington’s imposition of 10% tariffs on all Chinese goods by announcing new tariffs on some American imports, including oil and liquefied natural gas. Beijing also said it would launch an antitrust investigation into Google Inc.

The renewed tensions have erased gains from Monday’s rally in markets, which came after a temporary deal with the Trump administration to delay tariffs on Mexico and Canada for a month. Cryptocurrencies were sold off sharply when the tariffs were first announced over the weekend. Escalating trade tensions have shaken investor confidence in riskier assets, with U.S. investors pulling $235 million from 12 bitcoin-focused exchange-traded funds on Monday. Demand for bitcoin futures on the CME Group derivatives exchange fell 4%, suggesting growing caution among institutional investors.