Bitcoin moved slightly on Thursday, struggling to gain momentum and holding onto most of its recent losses as risk appetite for cryptocurrencies waned due to renewed concerns about a US-China trade war.
The world's largest cryptocurrency has been trading within a $100,000 to $110,000 range this month, as traders have become more cautious about cryptocurrencies after a flash crash that wiped out nearly $500 billion in market capitalization earlier in October.
Bitcoin rose 0.8% to $108,918.2 by 10:06 a.m. Saudi time. The cryptocurrency reached a low of around $103,000 earlier this month.
US-China trade tensions return amid reports of additional restrictions
US-China trade tensions, which have been a significant drag on risk appetite this month, returned to markets this week, with reports indicating that Washington is considering a response to China's restrictions on rare earths exports.
The United States is considering restrictions on a range of software-related exports to China, according to reports on Wednesday — a move that could anger Beijing and spark a renewed trade war between the two economic giants.
While trade tensions don't directly impact the cryptocurrency industry, market volatility due to a renewed trade war caused investors to largely avoid cryptocurrencies in October. Safe havens like gold attracted significant inflows, while technology stocks were favored among risk-driven investments.
Bitcoin significantly lagged the Nasdaq Composite Index in October, as the hype surrounding artificial intelligence also led traders to favor technology stocks over cryptocurrencies. Bitcoin's losses in October largely offset optimism about the October bull run, as cryptocurrency markets tend to outperform in October.
Bitcoin is down about 5% so far in October, compared to a 10% rise in October 2024.
Selling pressure on the world's largest cryptocurrency also stemmed from reports this week that a major Bitcoin investor had taken a short position on the cryptocurrency. The same investor had taken a short position on Bitcoin before its flash crash earlier in October.
Cryptocurrency Prices Today: Altcoins Lack Hope as October Bullishness Fades
Broader cryptocurrency prices moved in a stable-to-low range, with Bitcoin, amid a rapid fading of the enthusiasm surrounding the October bull run. Most altcoins also suffered losses for the month.
The world's second-largest cryptocurrency, Ether, stabilized at $3,855.63, while BNB outperformed, rising 3.1% to $1,103.89.
XRP, Solana, and Cardano posted moderate gains, while among meme coins, Dogecoin rose 1% and TRUMP fell 0.4%.
