{"id":120039,"date":"2025-10-17T10:55:34","date_gmt":"2025-10-17T06:55:34","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=120039"},"modified":"2025-10-17T12:05:48","modified_gmt":"2025-10-17T08:05:48","slug":"bitcoin-extends-losses-as-risk-aversion-and-doj-seizure-pressure-crypto-markets-2","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/bitcoin-extends-losses-as-risk-aversion-and-doj-seizure-pressure-crypto-markets-2\/10\/17\/market-updates\/","title":{"rendered":"Bitcoin Extends Losses as Risk Aversion and DOJ Seizure Pressure Crypto Markets"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>Bitcoin fell on <strong>Thursday<\/strong>, extending its decline after last week\u2019s flash crash as traders remained risk-averse amid <strong>renewed U.S.-China trade tensions<\/strong> and ongoing concerns over regulatory developments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Bitcoin Struggles to Regain Momentum<\/strong><\/h3>\n\n\n\n<p>The world\u2019s largest cryptocurrency dropped <strong>1.3%<\/strong> to <strong>$111,031<\/strong> by <strong>05:10 GMT (01:10 ET)<\/strong>, slipping after attempts to stabilize above the <strong>$115,000<\/strong> level. Despite the weakness, Bitcoin remains well above last week\u2019s lows near <strong>$103,000<\/strong>, supported by some optimism around <strong>potential U.S. interest rate cuts<\/strong>.<\/p>\n\n\n\n<p>The recent turbulence followed a record <strong>$16 billion liquidation<\/strong> of leveraged long positions last week \u2014 the largest single-day wipeout in crypto history. The sharp drop, sparked by fears of an escalating <strong>U.S.-China trade war<\/strong>, erased over <strong>$500 billion in total crypto market capitalization<\/strong> within days.<\/p>\n\n\n\n<p>Market sentiment has yet to fully recover. The <strong>Crypto Fear &amp; Greed Index<\/strong> sank into <strong>\u201cfear\u201d territory<\/strong>, signaling persistent caution and reluctance to rebuild long positions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Trade Tensions Continue to Weigh on Sentiment<\/strong><\/h3>\n\n\n\n<p>Bitcoin\u2019s weakness has closely mirrored broader risk assets as geopolitical tensions linger. <strong>U.S. President Donald Trump\u2019s<\/strong> threat to impose <strong>100% tariffs on Chinese imports<\/strong> reignited fears of another trade confrontation.<br>Beijing vowed to \u201c<strong>fight to the end<\/strong>\u201d if a new trade war emerges, while Washington officials hinted at <strong>diversifying supply chains away from China<\/strong>, further unsettling investors.<\/p>\n\n\n\n<p>These developments have pressured risk-sensitive assets, including cryptocurrencies, as investors pivot toward <strong>traditional safe havens<\/strong> such as <strong>gold<\/strong>, which continues to post fresh record highs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Regulatory Shock: DOJ Seizes $15 Billion in Bitcoin<\/strong><\/h3>\n\n\n\n<p>In a major regulatory development, the <strong>U.S. Department of Justice (DOJ)<\/strong> announced it had <strong>seized 127,271 Bitcoin<\/strong>\u2014worth roughly <strong>$15 billion<\/strong>\u2014from a <strong>Cambodia-based \u201cpig butchering\u201d scam<\/strong>, marking the <strong>largest crypto forfeiture in DOJ history<\/strong>.<\/p>\n\n\n\n<p>Prosecutors charged <strong>Chen Zhi<\/strong>, chairman of <strong>Prince Holding Group<\/strong>, with <strong>wire fraud and money laundering<\/strong>, alleging he oversaw a \u201ccriminal empire built on forced labor and deception.\u201d The seized Bitcoin will reportedly be moved into a newly created <strong>U.S. strategic Bitcoin reserve<\/strong>, following an executive order from President Trump earlier this year.<\/p>\n\n\n\n<p>The massive seizure stirred unease across crypto markets, raising fears of further <strong>government crackdowns<\/strong> and potential <strong>liquidations<\/strong> from state-held Bitcoin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Altcoins Extend Declines<\/strong><\/h3>\n\n\n\n<p>Broader crypto markets mirrored Bitcoin\u2019s downturn, with most major altcoins trading lower:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ethereum (ETH)<\/strong> fell <strong>2.8%<\/strong> to <strong>$3,996.47<\/strong>, slipping below the key $4,000 level.<\/li>\n\n\n\n<li><strong>XRP<\/strong> dropped <strong>3.7%<\/strong>, while <strong>BNB<\/strong> edged <strong>1.3%<\/strong> lower.<\/li>\n\n\n\n<li><strong>Solana (SOL)<\/strong> and <strong>Cardano (ADA)<\/strong> declined <strong>5.8%<\/strong> and <strong>4.4%<\/strong>, respectively.<\/li>\n\n\n\n<li>Among meme tokens, <strong>Dogecoin<\/strong> shed <strong>4.2%<\/strong>, while <strong>$TRUMP<\/strong> fell <strong>3.5%<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Outlook<\/strong><\/h3>\n\n\n\n<p>Analysts note that while <strong>lower U.S. interest rate expectations<\/strong> could provide near-term support, the <strong>combination of trade uncertainty, regulatory action, and market liquidation fatigue<\/strong> continues to suppress momentum.<\/p>\n\n\n\n<p>Until confidence returns and volatility subsides, crypto markets are likely to remain defensive \u2014 with <strong>Bitcoin consolidating below $115,000<\/strong> and traders avoiding aggressive positioning ahead of further geopolitical and regulatory headlines.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin fell on Thursday, extending its decline after last week\u2019s flash crash as traders remained risk-averse amid renewed U.S.-China trade tensions and ongoing concerns over regulatory developments. Bitcoin Struggles to Regain Momentum The world\u2019s largest cryptocurrency dropped 1.3% to $111,031 by 05:10 GMT (01:10 ET), slipping after attempts to stabilize above the $115,000 level. Despite &hellip;<\/p>\n","protected":false},"author":9,"featured_media":99111,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[40,6827,49,36],"tags":[],"class_list":["post-120039","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-cryptocurrencies","category-daily-economic-reports","category-economic-reports","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=120039"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120039\/revisions"}],"predecessor-version":[{"id":120041,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/120039\/revisions\/120041"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/99111"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=120039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=120039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=120039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}