Bitcoin Holds Near $111K as Traders Monitor China Tensions and Market Sentiment
Bitcoin (BTC) traded around $111,000 Thursday afternoon Hong Kong time, showing relative stability after recent swings, as China’s latest retaliatory trade actions against the U.S. sparked renewed caution across global markets.
Analysts note that Bitcoin’s correlation with gold has climbed to a multi-year high of 0.9, reinforcing its reputation as “digital gold,” with both assets moving in tandem during geopolitical shocks.
The broader cryptocurrency market remained cautious, with total capitalization steady at roughly $3.8 trillion. Major coins held near recent levels: Ether (ETH) near $3,940, BNB at $1,180, Solana (SOL) above $190, while DOGE outperformed with a 4% daily gain and 21% weekly rise.
Market observers described the latest pullback as digestive rather than panic-driven, following last week’s record $19 billion liquidation event. On-chain analytics firm CryptoQuant noted the move reflected a “controlled deleveraging”, rather than broad panic selling.
Sentiment data show cautious optimism. The FxPro fear index dropped to 34, with traders defending the $109K–$110K range, a level that has acted as a base since August. FxPro analyst Alex Kuptsikevich commented, “The bears seem to have had their fill. Potential buyers are waiting for clearer reasons to take on risk, and trade tensions don’t qualify yet.”
On-chain indicators remain constructive. CryptoQuant’s Ki Young Ju highlighted Bitcoin’s strong correlation with gold, underscoring its role as a store of value amid macro uncertainty.
Ethereum also showed signs of long-term confidence. Developers advanced testing of the Fusaka upgrade on Sepolia, while Bhutan announced plans to migrate its national digital ID system from Polygon to Ethereum by early 2026, signaling institutional trust in Ethereum’s network.
Institutional flows continue to stabilize markets. Nassar Achkar, Chief Strategy Officer at CoinW, said, “Despite historic deleveraging, structural demand for Bitcoin and Ethereum remains intact. ETF inflows and stablecoin supply growth continue building liquidity—what matters now is how quickly that converts into new risk-taking.”
Traders remain attentive to macro catalysts, including Trump’s tariff rhetoric and Powell’s upcoming remarks. Nick Ruck of LVRG Research noted, “Rate cuts are on the table, but tariff fears cap upside. Bitcoin’s long-term value is attracting investors, but macro headlines keep short-term movements choppy.”
For now, the $110,000 support level is the key zone to watch. A break below could shift sentiment from cautious to defensive, shaping Bitcoin’s next significant move.
