16 Oct 2025
Bitcoin LOWS, despite fears of China-US trade war
Bitcoin experienced a slight decline on Thursday, remaining under pressure following a significant flash crash that occurred last week. This downturn was exacerbated by ongoing risk aversion linked to escalating trade tensions between the United States and China, which have been affecting cryptocurrency markets.
Traders in the crypto space are still feeling the aftershocks of a staggering $16 billion liquidation of long positions that took place during last week's market turmoil, leading to a cautious approach regarding any substantial short-term investments.
Despite this, Bitcoin has managed to maintain a position well above the lows it reached last week, buoyed somewhat by the potential for lower interest rates in the U.S. At 09:42 ET (13:42 GMT), Bitcoin was trading at $111,480, a marginal decrease of 0.1%, after having plummeted to as low as $103,000 just days prior.
The sentiment surrounding Bitcoin and the broader cryptocurrency market has soured significantly following the flash crash. This incident was primarily instigated by U.S. President Donald Trump’s announcement of potential 100% tariffs on Chinese goods, which reignited fears of a trade war between the two economic giants.
As tensions between Washington and Beijing continue to escalate, with China pledging to resist any trade aggression, the uncertainty has left investors on edge. The cryptocurrency market is particularly sensitive to such geopolitical developments, as they can lead to increased volatility and risk aversion among investors.
Moreover, Bitcoin is facing heightened vulnerability to profit-taking measures after reaching record highs above $126,000 earlier this month.
The CoinMarketCap crypto fear and greed index has dipped into the "fear" territory, indicating a prevailing sense of caution among traders and investors. This sentiment is further reflected in the market dynamics, as participants are wary of making significant movements in either direction amid the current climate of uncertainty.
Adding to the complexity of the situation, the U.S. Department of Justice (DOJ) recently announced the seizure of 127,271 Bitcoin, valued at approximately $15 billion, in connection with a cryptocurrency scam based in Cambodia. This seizure marks the largest forfeiture of Bitcoin in the history of the DOJ.
The agency has charged Chen Zhi, the founder and chairman of Prince Holding Group, with wire fraud and money laundering, alleging that he operated a criminal enterprise built on deception and forced labor. The operation, described as a "pig butchering" scam, involves scammers gaining the trust of victims and luring them into fraudulent investment schemes.
This unprecedented seizure not only underscores the ongoing regulatory scrutiny facing the cryptocurrency sector but also highlights the potential risks that investors face in a largely unregulated environment.
As the market grapples with these challenges, the future trajectory of Bitcoin and other cryptocurrencies remains uncertain, with traders closely monitoring both domestic and international developments that could impact their investments.
