The outflows coincided with broader risk-asset weakness stemming from escalating US-China trade tensions over rare-earth export controls.
China expanded its rare-earth export restrictions this week, targeting critical inputs for the semiconductor, defense, and electronics manufacturing industries.
The new controls carry extraterritorial reach, prompting Washington officials to warn of accelerated economic “decoupling” between the two nations.
These headlines pushed the price below the range between $111,000 and $110,000, triggering a cascade of liquidations in Bitcoin futures markets.
Markets adopted a risk-averse stance as headlines highlighted new port-fee measures affecting US vessels and coordinated G7 efforts to counter China’s export restrictions.
Traders now monitor the $107,000-$110,000 technical range for Bitcoin’s next directional move.
A clean break below this support zone risks triggering additional liquidation-driven selling pressure as the crypto navigates the intersection of reduced institutional demand and heightened geopolitical uncertainty.
