Bitcoin rose on Wednesday, but remained close to recent lows as cryptocurrency markets struggled to recover from a bruising flash crash earlier in October.
Bitcoin rose on Wednesday, but remained close to recent lows as cryptocurrency markets struggled to recover from a bruising flash crash earlier in October.
A risk-off move in broader financial markets also provided little support to crypto, with the sector having largely lagged its risk-driven peers this year. Persistent uncertainty over the U.S. economy and renewed trade tensions with China kept traders averse towards speculative assets, while an overnight slide in gold also drew limited buyers into crypto.
Bitcoin rose 0.9% to 108,516.3 by 01:07 ET (05:07 GMT).
Bitcoin struggles to recover as ‘uptober’ cheer chills
The world’s largest crypto had slumped as low as $103,000 earlier this month, and has struggled to break above $110,000 since.
Broader crypto markets also struggled this month, as optimism over “uptober,” a trend of crypto markets outperforming in October, ran dry.
Bitcoin is trading down about 2% so far in October, a sharp contrast to last year’s 10% gain during the month. While enthusiasm over uptober had driven gains earlier in the month, they largely fizzled out amid growing risk aversion.
Crypto markets bore the brunt of risk aversion, especially as they lagged a broader recovery in financial markets, especially equities, seen in recent weeks.
Major Asian stock exchanges seen rejecting crypto treasury strategy- report
Adding to pressure on crypto markets, Bloomberg reported that three of the Asia Pacific’s biggest stock exchanges were scrutinizing plans by listed companies to pivot into digital asset strategies as their core business.
Most recently, the Hong Kong Stock Exchange operator, HKEX, challenged the plans of at least five firms seeking a pivot into digital asset treasuries, citing its rules against large liquid holdings, Bloomberg reported.
Similar plans also faced opposition in Australia and India, the report said.
The Bloomberg report comes amid increasing doubts over the long-term viability of the corporate treasury pivot popularized by Strategy Inc. Investors questioned how such companies could maintain their long-term returns on their digital asset holdings, especially in periods of extended crypto market weakness and volatility.
Analysts had earlier this year also flagged concerns over overcrowding in the corporate treasury sector.
Crypto price today: altcoins struggle as Bitcoin recovery falters
Broader crypto prices largely moved in a flat-to-low range, amid a dearth of direct trading cues and as investor sentiment towards the sector showed few signs of improvement.
World no.2 crypto Ether fell 0.5% to $3,843.59, while BNB fell 0.7% to $1,061.70.
XRP shed 1.2%, while Cardano fell 0.9%. Solana was flat.
Among memecoins, Dogecoin fell 1.2%, while $TRUMP shed 0.7%.