Bitcoin prices steadied near $109,000 on Thursday, as renewed U.S.-China trade tensions dampened investor appetite for risk assets, leaving the world’s largest cryptocurrency range-bound after a turbulent start to October.
At 02:06 ET (06:06 GMT), Bitcoin rose 0.8% to $108,918.2, hovering near the midpoint of its $100,000–$110,000 trading range for the month. The token remains under pressure following a flash crash earlier in October that erased over $500 billion in total crypto market capitalization.
While optimism over “Uptober”—a month traditionally associated with strong crypto performance—initially buoyed sentiment, Bitcoin’s performance has since faltered. It is now down nearly 5% in October, a stark contrast to the 10% gain recorded in October 2024.
Trade Tensions Cool Risk Appetite
Reports that Washington may restrict software-powered exports to China reignited fears of a renewed trade conflict, unsettling global markets. The potential escalation follows Beijing’s recent rare earth export curbs, which prompted U.S. officials to weigh retaliatory measures.
Although digital assets are not directly tied to trade flows, geopolitical uncertainty has historically curbed enthusiasm for speculative investments like crypto. Traders have increasingly shifted toward safe-haven assets such as gold and technology stocks, viewing them as more stable plays amid mounting economic uncertainty.
“Trade friction tends to tighten liquidity and weaken sentiment for high-risk assets, and Bitcoin is no exception,” said a market strategist at Saxo Bank.
Adding to Bitcoin’s headwinds, reports surfaced that a major Bitcoin whale—an investor holding large amounts of the asset—had opened a short position, echoing a similar move before the earlier flash crash. This reinforced selling pressure across the crypto market.
Altcoins Flat as “Uptober” Loses Steam
Broader cryptocurrency markets mirrored Bitcoin’s muted performance. Most altcoins traded sideways, with fading optimism over October’s historical gains.
- Ether (ETH) was little changed at $3,855.63.
- BNB outperformed peers, gaining 3.1% to $1,103.89.
- XRP, Solana, and Cardano posted modest advances.
- Among memecoins, Dogecoin rose 1%, while $TRUMP slipped 0.4%.
Despite ongoing volatility, analysts note that Bitcoin’s resilience above the $100,000 support level reflects underlying market stability. Still, with trade tensions resurfacing and liquidity tightening, investors may remain cautious before re-entering riskier crypto positions in the short term.