Bitcoin price today: muted at $111.5k as trade tensions, risk aversion weigh

Investing.com-- Bitcoin slipped 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 edged lower 0.1% to $111,480 by 09:42 ET (13:42 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. 

Kraken acquires Small Exchange for $100mn to build U.S. derivatives platform

In other crypto-related developments, crypto exchange Kraken has agreed to buy Small Exchange, a CFTC-regulated designated contract market, from IG Group in a $100 million deal.

The company said on Thursday that the purchase will give it a fully U.S.-based platform for derivatives trading.

It marks another step in Kraken’s push into the American futures and derivatives market, coming after its acquisition of NinjaTrader, a U.S. futures trading platform, earlier this year.

Crypto price today: altcoins slide 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 slid 0.5% to $4,057.01, while XRP fell 1.6%. BNB, meanwhile, added nearly 1%. 

Solana and Cardano lost 2.5% and 1.9%, respectively. 

Among meme tokens, Dogecoin shed around 1%, while $TRUMP fell 1.8%.

(Ambar Warrick contributed to this report.)