The global digital assets market printed red across the board as Bitcoin (BTC) hovered around $111,000. This appeared to be the new norm following another volatile stretch in global markets. Fresh retaliatory trade measures from China against the US reignited risk aversion among investors.
The cumulative crypto market cap dipped marginally to stand at $3.8 trillion, with a 24-hour trading volume of $200 million. Bitcoin’s price has dropped by 10% over the past 7 days, yet it remains up by 20% on a year-to-date (YTD) basis. Ethereum (ETH) also experienced a decline, dropping 8% over the last week. Other altcoins like XRP and Solana saw steeper declines, with dumps of 13% and 12%, respectively.
**Traders Tighten Grip as Bitcoin Sentiment Sours**
On-chain metrics point to a softening in spot Bitcoin demand over the past week. Data from CryptoQuant shows spot demand has declined at a 30-day rate of 111,000 BTC. The report highlights Binance-driven selling pressure as a significant contributor, outweighing buying interest from other exchanges.
Three key indicators illustrate this trend: Coinbase Premium, Funding Rate, and Taker Buy/Sell Ratio.
– The Coinbase Premium remains in positive territory even as Bitcoin’s price continues to fall. While generally a bullish sign, this implies that Binance-based selling pressure is dominating.
– Binance’s Funding Rate has recorded four consecutive days of negative readings, signaling that futures traders on the exchange are increasingly betting on short-term downside.
– The Taker Buy/Sell Ratio has dropped to its lowest point in over a year, reflecting a surge in aggressive selling activity.
Despite this short-term weakness, fundamentals remain intact.
**Bitcoin Clings to $110K Base**
Analysts point out that the recent pullback is more of a controlled deleveraging than a panic-driven sell-off. Last week saw over $19 billion in liquidations, primarily due to the forced closure of leveraged positions. In reaction, the crypto market cap briefly fell from $4.24 trillion to $3.79 trillion.
Amid this volatility, Bitcoin’s correlation with gold hit a multi-year high of 0.9, reinforcing its “digital gold” narrative as investors sought safe-haven assets amid geopolitical tensions.
At press time, Bitcoin is trading at an average price of $111,594, with a 24-hour trading volume down 11% to $72.6 billion.
Meanwhile, Ethereum’s ecosystem shows signs of long-term confidence. Developers are advanced in testing the Fusaka upgrade on Sepolia. Additionally, Bhutan has confirmed plans to migrate its national digital ID system from Polygon to Ethereum by early 2026, reflecting growing institutional trust in the network.
Ethereum is currently trading around $4,045.
**External Factors and Market Outlook**
External macroeconomic factors, including President Donald Trump’s escalation of the trade war and threatened tariffs on Chinese imports, have added layers of uncertainty. Nonetheless, the market has so far absorbed the volatility.
Bitcoin continues to hold the $109,000-$110,000 range—a base that has persisted since August—demonstrating measured optimism among traders.
—
*Sign up to Bybit and start trading with $30,050 in welcome gifts.*
https://bitcoinethereumnews.com/bitcoin/bitcoin-holds-the-line-at-111k-as-china-us-trade-flare-up-shakes-global-markets/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-holds-the-line-at-111k-as-china-us-trade-flare-up-shakes-global-markets