Bitcoin Stalls Amid US-China Trade Tensions, MicroStrategy Posts Loss

Bitcoin Price Stability Amid Trade War Concerns

Bitcoin traded flat at $98,311.0 on Thursday, reflecting muted risk appetite as US-China trade tensions intensified. The escalating conflict, marked by new tariffs from both nations, has driven investors toward safe-haven assets, dampening sentiment in the cryptocurrency market. Concerns over inflation and reduced liquidity due to the tariffs further weighed on investor confidence.

MicroStrategy Reports Fourth Consecutive Quarterly Loss

MicroStrategy, the largest corporate Bitcoin holder, posted a fourth-quarter net loss of $670.8 million, compared to a $89.1 million profit last year. The loss was primarily due to a $1.01 billion impairment charge on its Bitcoin holdings. Despite this, the company expanded its Bitcoin portfolio, acquiring 218,887 additional bitcoins for $20.5 billion, bringing its total holdings to 471,107 bitcoins valued at $45.6 billion.

MicroStrategy remains committed to its Bitcoin-focused strategy, planning to raise $42 billion through equity and debt over three years. However, its shares fell 3.3% on Wednesday and an additional 1.4% in extended trading.

Altcoins Underperform as Ethereum Faces Intense Competition

Most altcoins declined on Thursday, underperforming Bitcoin's stable price. Ethereum, the second-largest cryptocurrency, dropped 2.2% to $2,761.37, while XRP, Solana, Polygon, and Cardano also saw significant losses. Meme tokens like Dogecoin fell 3.5%.

Ethereum continues to face challenges from rival blockchains offering lower fees and greater scalability. According to JPMorgan strategists, Ethereum’s market share has dropped to a four-year low amid strong competition and a lack of a compelling narrative. While the Dencun upgrade aimed to improve scalability, much of its activity has shifted to layer 2 solutions, limiting direct benefits to the main chain.

Despite these challenges, Ethereum remains a key player in stablecoins, DeFi, and tokenization. However, its long-term leadership in these areas is uncertain as competition intensifies.