Bitcoin fell toward USD 107,500 on Tuesday, erasing most of the gains from the previous two sessions as bearish momentum reasserted itself.
The move came despite an improvement in broader risk sentiment, with investors encouraged by signs of easing US-China tensions.
ETF flows remained a headwind, with US spot Bitcoin funds posting another USD 40 million in outflows on Monday, extending the recent slowdown in institutional demand. At the same time, liquidations continued to paint a negative picture. Over the past 24 hours, USD 250 million in long positions were wiped out versus just USD 71 million in shorts, signalling persistent downside pressure in the near term and a market still dominated by forced deleveraging.
On the geopolitical front, President Donald Trump reiterated optimism that a trade deal with China could be reached at the end of the month, even as recent tariff and rare-earth disputes weigh on sentiment. The reassurance helped global risk assets, but cryptos have so far failed to capitalise on the improvement.
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