Bitcoin retreated on Thursday, remaining under pressure after last week's flash crash as continued risk aversion, driven by renewed trade tensions between the United States and China, weighed on cryptocurrency markets.
Cryptocurrency traders also remained nervous after liquidating $16 billion in long positions last week and were wary of making any large bets in the short term.
However, Bitcoin traded above last week's lows amid some relief from the prospect of a US interest rate cut. The world's largest cryptocurrency fell 1.3% to $111,031.00 by 9:10 a.m. Saudi time, after falling to a low of $103,000 last week.
Bitcoin declines as cryptocurrency sentiment deteriorates after flash crash
Bitcoin and broader cryptocurrency prices struggled to gain momentum this week after a record $16 billion in long positions were liquidated in last week's flash crash.
The collapse was largely triggered by US President Donald Trump's threat to impose 100% tariffs on China, which heightened market fears of a renewed trade war.
Washington and Beijing remained at odds this week, with China vowing to fight in any trade war, while US officials were seen calling for a greater shift away from China.
Bitcoin was also vulnerable to profit-taking after hitting record highs above $126,000 earlier this month.
CoinMarketCap's Fear and Greed Index for cryptocurrencies fell into fear territory this week, indicating continued caution in the market.
The US Department of Justice seized $15 billion in Bitcoin from a pig slaughter scam.
The U.S. Department of Justice announced Wednesday that it had seized 127,271 bitcoins, worth approximately $15 billion, in connection with a Cambodia-based cryptocurrency scam. The Justice Department added that the seized bitcoins were the largest ever seizure of cryptocurrency.
The Department of Justice has charged Chen Qi, founder and chairman of Prince Holdings Group, with wire fraud and money laundering for operating a criminal empire built on forced labor and deception.
Federal prosecutors described the operation as a pig-slaughter scam, in which fraudsters gain the victim's trust and trick them into fake investments.
The Bitcoin seizure is the largest ever in the Justice Department's history, although it was unclear how many coins the government now holds. The Justice Department has previously sold some of its confiscated Bitcoin on public markets, although an executive order from Trump earlier this year will now direct the Department of Justice's holdings to be placed in a strategic Bitcoin reserve.
Cryptocurrency Prices Today: Altcoins Fall Amid Few Positive Signs
Broader cryptocurrency prices weakened in tandem with Bitcoin, as traders remained wary of short-term bets and long positions.
The world's second-largest cryptocurrency, Ether, fell 2.8% to $3,996.47, while XRP fell 3.7%. BNB fell 1.3%.
Solana and Cardano lost 5.8% and 4.4%, respectively.
Among meme coins, Dogecoin fell 4.2%, while $TRUMP fell 3.5%.
