Investing.com– Bitcoin fell on Thursday, remaining under pressure after a flash crash last week as persistent risk aversion, on renewed U.S.-China trade tensions, chipped away at crypto markets.
Crypto traders also remained on edge after a $16 billion liquidation of long positions last week, and were wary of any major short-term bets.
Still, Bitcoin traded well above last week’s lows amid some relief from the prospect of lower U.S. interest rates. The world’s largest crypto fell 1.3% to $111,031.0 by 01:10 ET (05:10 GMT), after sliding as low as $103,000 last week.
Bitcoin on backfoot as crypto sentiment sours after flash crash
Bitcoin and broader crypto prices struggled to gain traction this week after a record high, $16 billion liquidation of long positions in last week’s flash crash.
The crash was largely triggered by U.S. President Donald Trump threatening to impose 100% tariffs against China, which ramped up market concerns over a renewed trade war.
Washington and Beijing remained at odds this week, with China vowing to fight in any trade war, while U.S. officials were seen calling for a greater pivot away from China.
Bitcoin was also vulnerable to profit-taking after hitting record highs above $126,000 earlier this month.
The CoinMarketCap crypto fear and greed index sank into fear territory this week, pointing to sustained caution in the market.
US DOJ seizes $15 bln Bitcoin from ‘pig butchering’ scam
The U.S. Department of Justice said on Wednesday it had seized 127,271 Bitcoin, worth roughly $15 billion, in relation to a Cambodia-based crypto scam. The DOJ added that the Bitcoin seized was the biggest forfeiture ever of the crypto.
The DOJ charged Chen Zhi, founder and chairman of Prince Holding Group, with wire fraud and money laundering in operating a “criminal empire built on forced labor and deception.”
Federal prosecutors described the operation as a “pig butchering” scam, where scammers gain the trust of a victim and dupe them into fake investments.
The Bitcoin seizure is the largest ever in the DOJ’s history, although it was unclear just how many coins the government now holds. The DOJ has in the past sold off some of its Bitcoin seizures in public markets, although an executive order from Trump earlier this year will now see the DOJ’s holdings deployed into a strategic Bitcoin reserve.
Crypto price today: altcoins sink amid few positive signals
Broader crypto prices largely weakened in tandem with Bitcoin, as traders remained wary of short-term bets and long positions.
World no.2 crypto Ether fell 2.8% to $3,996.47, while XRP fell 3.7%. BNB shed 1.3%.
Solana and Cardano lost 5.8% and 4.4%, respectively.
Among meme tokens, Dogecoin shed 4.2%, while $TRUMP fell 3.5%.
