Bitcoin Holds Steady as U.S.-China Trade Tensions Weigh on Market

Bitcoin remained largely stable on Friday, reflecting muted risk appetite amid escalating trade tensions between the U.S. and China. Meanwhile, MicroStrategy (NASDAQ:MSTR) reported its fourth consecutive quarterly loss, though it continued expanding its Bitcoin holdings.

Bitcoin Market Update

• Bitcoin (BTC/USD): $97,742.7 (-0.3%) as of 00:35 ET (05:35 GMT)
• Market Sentiment: Weighed down by trade war fears and inflation concerns
• Safe-Haven Shift: Investors are cautiously positioning amid macroeconomic uncertainty

Trade War Fears Pressure Crypto Market

• President Donald Trump imposed a 10% tariff on Chinese imports, citing national security concerns.
• China retaliated with tariffs on U.S. goods, including LNG, coal, crude oil, and farm equipment.
• This intensified fears of a prolonged trade war, shifting focus towards safe-haven assets.
• Inflation concerns from tariffs could further impact market liquidity.

MicroStrategy Q4 Earnings: Fourth Straight Loss

• Q4 Net Loss: $670.8 million (vs. $89.1 million profit last year)
• Bitcoin Holdings: Increased to 471,107 BTC (valued at $45.6 billion)
• New Purchases: 218,887 BTC bought for $20.5 billion
• Impairment Charge: $1.01 billion (expected to be revised under 2025 accounting rules)
• Stock Performance:
  • Wednesday Close: -3.3%
  • Extended Trade: -1.4%

Future Plans:

• “Strategy” (rebranded MicroStrategy) aims to raise $42 billion via equity and debt over three years to continue its Bitcoin-focused strategy.

Altcoin Market Performance

• Ethereum (ETH): $2,833.5 (+1.7%)
• XRP: $2.4367 (-4%)
• Solana (SOL): -2.1%
• Polygon (MATIC): -1.4%
• Cardano (ADA): -0.4%
• Dogecoin (DOGE): -2%

Market Outlook

• Bitcoin’s price stability suggests investors are cautiously navigating macroeconomic headwinds.
• MicroStrategy’s aggressive BTC accumulation continues despite heavy losses.
• Altcoins remain volatile, mirroring Bitcoin’s lack of momentum.
• Geopolitical risks and U.S. economic data will be key factors driving crypto sentiment in the coming weeks.