Bitcoin rose on Wednesday, but remained close to recent lows as cryptocurrency markets struggled to recover from a flash crash earlier in October.
The risk-off movement in broader financial markets also provided little support for cryptocurrencies, with the sector largely lagging behind its risk-driven peers this year. Continued uncertainty about the US economy and renewed trade tensions with China kept traders away from speculative assets, while an overnight decline in gold also attracted limited buyers to cryptocurrencies.
Bitcoin rose 0.9% to 108,516.3 by 09:07 Saudi time.
Bitcoin struggles to recover as October bullish enthusiasm fades
The world's largest cryptocurrency fell to as low as $103,000 earlier this month and has struggled to break above $110,000 since then.
The broader cryptocurrency markets also struggled this month, as optimism about a bullish October ran out, a trend that has seen cryptocurrency markets outperform in October.
Bitcoin is trading down about 2% so far in October, a sharp contrast to last year's 10% gains during the month. While the euphoria surrounding a bullish October had fueled gains earlier in the month, they have largely faded amid growing risk aversion.
Cryptocurrency markets have borne the brunt of risk aversion, especially as they have lagged behind the broader recovery in financial markets, particularly stocks, that has been seen in recent weeks.
Report: Major Asian Exchanges Reject Cryptocurrency Vault Strategy
Adding further pressure to cryptocurrency markets, Bloomberg reported that three of the largest stock exchanges in the Asia-Pacific region were scrutinizing listed companies' plans to transition to digital asset strategies as their core business.
Recently, the Hong Kong Stock Exchange (HKEX) challenged plans by at least five companies seeking to transition to digital asset vaults, citing its rules against large liquid holdings, according to a Bloomberg report.
Similar plans have also faced opposition in Australia and India, according to the report.
The Bloomberg report comes amid growing doubts about the long-term viability of the institutional treasury shift popularized by Strategy Inc. (NASDAQ:MSTR). Investors have questioned how these firms can maintain long-term returns on their digital asset holdings, especially during periods of prolonged weakness and volatility in the cryptocurrency market.
Analysts also pointed to concerns about overcrowding in the institutional treasury sector earlier this year.
Cryptocurrency Prices Today: Altcoins Struggle as Bitcoin's Recovery Falters
Broader cryptocurrency prices have generally moved in a stable to bearish range, amid a lack of direct trading signals and no signs of improving investor sentiment towards the sector.
Ether, the world's second-largest cryptocurrency, fell 0.5% to $3,843.59, while BNB fell 0.7% to $1,061.70.
XRP fell 1.2%, while Cardano fell 0.9%. Solana remained stable.
Among meme coins, Dogecoin fell 1.2%, while TRUMP$ fell 0.7%.
