Investing.com-- Bitcoin dropped on Wednesday, erasing this week’s modest gains as investors sought clarity on U.S. President Donald Trump’s tariff policies, which have rattled global markets.

The world’s largest cryptocurrency declined 2.5% to $83,409.4 by 01:20 ET (05:20 GMT).

The token had risen to over $86,000 on Tuesday but could not sustain those gains.

Tariff uncertainty fuels risk aversion; gold at record high

Investors weighed the broader implications of Trump’s fluctuating trade policy.

While the president has recently hinted at possible exemptions for certain tariffs—such as the 25% duty on foreign vehicle imports—his administration continues to pursue potential tariffs on semiconductor and pharmaceutical imports.

Meanwhile, Chinese goods remain subject to a cumulative 145% tariff, which had prompted a 125% retaliatory response from China.

This policy approach has rattled global risk appetite, dampening enthusiasm for speculative assets like cryptocurrencies.

Bitcoin, often viewed as a hedge during geopolitical tensions, appears to be losing some of its safe-haven appeal amid the mixed signals from Washington.

Notably, gold, viewed as a safe-haven asset was trading at a record high on Wednesday.

China weighs crypto disposal rules amid surge in seizures - Reuters

China is exploring new rules for handling seized cryptocurrencies as local governments grapple with a growing stockpile of tokens from criminal cases, Reuters reported on Wednesday.

With crypto trading banned on the mainland, authorities have turned to private firms to liquidate assets — a makeshift solution now drawing scrutiny.

Legal experts and regulators are calling for clearer oversight, amid rising cases and speculation China could mirror Trump’s proposed U.S. crypto reserve strategy, the report said.

China’s holdings, estimated at $1.4 billion in bitcoin, rank the state among the world’s top crypto holders, the report added.

Crypto price today: altcoins drop; Ethereum, Solana lead declines

Most altcoins saw much steeper declines than Bitcoin after sessions of subdued moves.

World no.2 crypto Ethereum dropped 4.6% to $1,565.68.

World no. 3 crypto XRP slipped 3.6% to $2.0706.

Solana declined 5%, and Cardano slumped 6%, while Polygon fell 2.2%

Among meme tokens, Dogecoin lost 4.5%, while $TRUMP was trading 3% lower.