Bitcoin Tops $98K Amidst Trade Tensions; MicroStrategy Posts $670M Loss

Bitcoin, the world's leading cryptocurrency, surged temporarily above the $98,000 mark on Friday, according to market data from HTX. The brief rally saw Bitcoin reach a high of $98,000 before retracing slightly to its current level of $97,950, with a 24-hour decrease of 0.22%.

The recent price action comes amidst escalating trade tensions between the United States and China, which have put 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. Despite the broader market uncertainty, Bitcoin has shown resilience, with its price temporarily breaking the $98,000 barrier.

Meanwhile, MicroStrategy, the largest corporate holder of Bitcoin, reported a fourth consecutive quarterly loss. The company posted a net loss of $670.8 million, compared with a $89.1 million profit last year. Despite the loss, MicroStrategy 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.

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.