Bitcoin Dips to $113K Amid Ongoing Trade and Economic Uncertainty
Bitcoin falls 0.8% to $113,467 amid trade worries and weak risk appetite.
Novogratz warns dominance by firms like Strategy (NASDAQ:MSTR) may limit Bitcoin liquidity.
Trade tensions, weak jobs data weigh on risk; Ether down 0.7%, XRP falls nearly 3%.
Bitcoin Retreats Amid Trade Uncertainty and Economic Worries
Bitcoin slipped 0.8% to $113,467.7 by early Wednesday (00:54 ET/04:54 GMT), hovering near a one-month low reached earlier this week.
The largest cryptocurrency remained pressured due to ongoing uncertainty stemming from U.S. trade tariff threats and signs of slowing global economic growth, which dampened investor risk appetite.
Alongside Bitcoin, broader cryptocurrencies also declined after a brief altcoin rally earlier in the week stalled. Continued profit-taking weighed on digital assets following July's strong performance.
Industry Caution as Corporate Bitcoin Holdings Face Challenges
Speaking during Galaxy Digital's Q2 earnings call, Novogratz highlighted concerns that a few dominant firms might monopolize the sector, potentially restricting liquidity and fundraising opportunities for new entrants.
This comes amid a surge in firms raising capital to purchase Bitcoin, inspired by the success of Strategy (NASDAQ:MSTR). Strategy, led by Michael Saylor, is the largest corporate Bitcoin holder and has gained significantly as investors sought indirect exposure through its stock.
Despite Strategy' aggressive Bitcoin acquisitions and new entrants like Japan’s Metaplanet Inc (TYO:3350), Bitcoin prices continued to decline on Wednesday.
Broader Market Pressures from Tariff Threats and Economic Data
Risk sentiment remained fragile as U.S. President Donald Trump intensified tariff threats, this time targeting India for its ongoing purchases of Russian oil.
Additionally, tariffs on several major U.S. trading partners are scheduled to be implemented from Friday. These geopolitical tensions, coupled with disappointing U.S. nonfarm payroll data last week, fueled concerns about an economic slowdown, even as bets on Federal Reserve interest rate cuts in September increased.
Altcoins fall:
Ether slipped 0.7% to $3,637.53
XRP dropped nearly 3% to $2.950
Solana lost 2.7%
Cardano declined 3.4%
Meme tokens also fell:
Dogecoin down 3.3%
$TRUMP retreating 2.4%
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