Bitcoin remained largely stable on Friday as risk appetite stayed subdued amid escalating U.S.-China trade tensions, while MicroStrategy, the largest corporate holder of Bitcoin, posted its fourth consecutive quarterly loss.
Bitcoin was 0.3% weaker at $97,742.7 by 00:35 ET (05:35 GMT).
Bitcoin muted amid US-China trade war fears
Escalating trade tensions between the U.S. and China have recently exerted significant pressure on the cryptocurrency market.
Last week, President Donald Trump implemented a 10% tariff on Chinese imports, citing national security concerns. China responded with retaliatory tariffs on U.S. goods, including liquefied natural gas, coal, crude oil, and farm equipment.
These actions have intensified fears of a prolonged trade war, prompting a shift towards safe-haven assets.
Investor sentiment has been further dampened by concerns over potential inflation resulting from the tariffs, which could weigh on liquidity.
MicroStrategy reports 4th straight quarterly loss, shares down
MicroStrategy Incorporated (NASDAQ:MSTR), now rebranded as "Strategy," reported a fourth-quarter net loss of $670.8 million, compared with a $89.1 million profit last year. This was the company's fourth straight quarterly loss.
Despite this, Strategy expanded its Bitcoin holdings during the quarter, purchasing 218,887 bitcoins for $20.5 billion, bringing its total to 471,107 bitcoins valued at $45.6 billion.
The loss was largely due to a $1.01 billion impairment charge on Bitcoin holdings, though future earnings will reflect Bitcoin’s actual market value under new accounting rules set for 2025.
The company remains committed to its Bitcoin-focused strategy, planning to raise $42 billion through equity and debt over three years.
Microstrategy stock closed 3.3% lower on Wednesday and fell further 1.4% in extended trade.
Crypto price today: Ethereum rises; XRP, SOL lower
Most altcoins were largely subdued, in line with Bitcoin moves, reflecting increased caution towards speculative assets.
World no.2 crypto Ether rose 1.7% to $2,833.5 on Thursday. World no. 3 crypto XRP fell 4% to $2.4367.
Solana was 2.1% weaker, and Polygon lost 1.4%, while Cardano inched 0.4% lower.
Among meme tokens, Dogecoin fell nearly 2%.
