China Retaliates on US Tariffs: Bitcoin Slips Below $100K
On February 4, Bitcoin fell below $100.000 as a sudden recovery was shattered by new concerns about a trade war. Following the daily opening, the BTC/USD exchange rate reversed by almost 3%, according to data from Cointelegraph Markets Pro and TradingView. The announcement that President Donald Trump will sign an executive order to establish a first-of-its-kind sovereign wealth fund and that US tariffs on Canada and Mexico would be postponed by one month caused markets to soar.
The Trump administration plans to reposition America as the leader in digital assets,
trader Jelle
However, when it became apparent that China was retaliating against US tariffs with its own measures targeting coal, oil, and other commodities, progress was halted.
Analysts Weigh In on Volatility and Market Trends
Michaël van de Poppe, a cryptocurrency trader, analyst, and entrepreneur, concurred that volatility will probably persist.
Bitcoin bounced back swiftly and is currently acting within the range. I assume we’ll see new ATHs in February and it’s quite normal to correct after such a strong bounce. Volatility through the roof, but, as long as Bitcoin remains above $93K, a new ATH is likely.
van de Poppe
Others, like trader Phoenix, predicted that the volatility would lead the BTC/USD pair to look into a new short-term range. Meanwhile, Axel Adler Jr., a contributor to the on-chain analytics site CryptoQuant, had reason to rejoice over funding rates across derivatives markets. Adler pointed out that during Bitcoin’s journey toward $90,000, funding rates had printed a crucial bull signal.
For the seventh time this year, the Bitcoin Funding Rate has turned negative. All six previous instances signaled a bullish momentum.
Adler
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