Bitcoin Slips as Risk Appetite Fades and Traders Take Profits

Bitcoin Retreats as Risk Sentiment Wanes and Traders Take Profits

Bitcoin (BTC) fell 1.2% to $102,399 on Thursday, retreating from a three-and-a-half-month high of $105,716 reached earlier in the week, according to LSEG data. The decline comes amid a broader weakening in risk appetite and a wave of profit-taking by investors after the recent rally.

David Morrison, analyst at Trade Nation, noted in a report that the reversal underscores Bitcoin’s ongoing vulnerability to shifts in global macroeconomic sentiment. “The asset class remains highly sensitive to external factors, and the recent pullback is a reflection of how quickly risk appetite can shift,” Morrison said.

Bitcoin initially surged after the U.S. and China announced a temporary suspension of tariffs on Monday, a move that boosted optimism in global markets. However, that momentum has since faded as investors digest mixed signals from the Trump administration regarding the long-term direction of trade policy.

Morrison emphasized that the uncertainty surrounding U.S. trade actions creates broader doubts about the global economic outlook, which in turn impacts speculative assets like cryptocurrencies. With the market now in a state of limbo, Bitcoin appears to be searching for direction amid a cautious risk environment.