Bitcoin was hovering around $111,000 on Thursday afternoon Hong Kong time, steady after another volatile stretch as China’s latest retaliatory trade measures against the United States reignited risk aversion in global markets.
The broader crypto market fell back into caution mode, with the total capitalization unchanged at approximately $3.8 trillion. Ether was trading near $4,000, BNB at $1,180 and Solana’s SOL held above $190, while It outperformed the major companies with a 4% daily gain and a 21% increase for the week.
Analysts said the latest pullback appears more like digestion than panic, following last week’s record $19 billion liquidation event, and on-chain firm CryptoQuant stated that the recent “decline was not a panic liquidation but a controlled deleveraging” in a weekly market note.
FxPro sentiment data showed that the fear index fell to 34, while traders continue to defend the $109,000 – $110,000 range that has acted as a base since August.
“The bears seem to have had enough,” FxPro’s Alex Kuptsikevich said in an email. “Potential buyers are waiting for a clearer reason to add risk, and trade tensions are not that reason yet.”
Chain signals are still leaning constructively. CryptoQuant’s Ki Young Ju noted that Bitcoin’s correlation with gold is at a multi-year high of 0.9, reinforcing the “digital gold” narrative as both assets move in tandem during geopolitical shocks.
Meanwhile, Ethereum developers advanced testing of the Fusaka upgrade in Sepolia, while Bhutan confirmed plans to migrate its national digital ID system from Polygon to Ethereum in early 2026, in a quiet sign of long-term confidence in the network’s infrastructure.
Institutional flow remains the stabilizer for some participants.
“Despite historic deleveraging, structural demand for Bitcoin and Ethereum remains firmly intact,” said Nassar Achkar, chief strategy officer at CoinW. “ETF inflows and stablecoin supply growth are still building the liquidity base; what matters now is how quickly it turns into new risk-taking.”
Meanwhile, traders continue to monitor Trump’s tariff rhetoric and Powell’s upcoming comments for catalysts. “Rate cuts are on the table, but tariff fears continue to limit upside,” said Nick Ruck of LVRG Research. “Bitcoin’s long-term value is pulling investors back, but macro headlines keep the short term choppy.”
$110,000 is now the area to take into account. If that is missed, sentiment could finally shift from cautious to defensive.
