BTC Consolidates Near $111K While Traders Monitor China Risks and Risk Appetite Weakens

Bitcoin Steadies Near $111K as Traders Eye China Trade Tensions

Bitcoin (BTC) traded around $111,000 Thursday afternoon Hong Kong time, holding steady after recent volatility, as China’s latest retaliatory trade measures against the U.S. triggered renewed caution across global markets.

Analysts point out that Bitcoin’s correlation with gold has reached a multi-year high of 0.9, reinforcing the “digital gold” narrative, as both assets tend to move in tandem during geopolitical shocks.

The broader cryptocurrency market remained cautious, with total capitalization holding near $3.8 trillion. Major tokens traded near recent levels: Ether (ETH) around $3,940, BNB at $1,180, Solana (SOL) above $190, while DOGE outperformed with a 4% daily gain and 21% weekly rise.

Observers describe the recent pullback as digestive rather than panic-driven, following last week’s record $19 billion liquidation event. On-chain analytics firm CryptoQuant stated it was a “controlled deleveraging,” indicating measured market adjustment rather than a full-scale sell-off.

Sentiment indicators point to cautious optimism. The FxPro fear index dropped to 34, with traders defending the $109K–$110K range, which has acted as a floor since August. FxPro analyst Alex Kuptsikevich said, “The bears seem to have had their fill. Potential buyers are waiting for clearer reasons to add risk, and trade tensions don’t qualify yet.”

On-chain signals remain constructive. CryptoQuant’s Ki Young Ju highlighted Bitcoin’s strong correlation with gold, emphasizing its role as a store of value amid macro uncertainty.

Ethereum’s ecosystem also shows 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 the market. 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 turns into new risk-taking.”

Traders are closely watching 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 are limiting upside. Bitcoin’s long-term value draws investors, but macro headlines keep short-term movements choppy.”

For now, the $110,000 support level remains crucial. A break below could shift sentiment from cautious to defensive, shaping Bitcoin’s next significant move.