- Bitcoin fell below $100K after Trump announced new tariffs on Chinese, Canadian, and Mexican imports.
- The move led to $22.7 million in Bitcoin liquidations and increased market volatility.
- Analysts are awaiting the February 7th U.S. non-farm payrolls (NFP) report to gauge Bitcoin’s future movement.
Bitcoin’s recent drop below $100K came after President Trump‘s tariff announcement, which escalated global trade tensions. The tariffs, including a 25% tax on Canadian and Mexican imports and 10% on Chinese goods, caused swift retaliation from impacted countries, further fueling fears of inflation and interest rate hikes.
Despite this, Bitcoin remains resilient, holding above key support levels. Analysts like Dan Gambardello argue that the market’s panic may be overblown, citing institutional investment in Bitcoin and Ethereum as signs of continued faith in the market.
Bitcoin Faces Volatility: Analysts Eye Key U.S. Economic Data for Next Move
Bitcoin’s price took a hit after President Trump’s tariff announcement, which sent shockwaves through global markets. The proposed tariffs, aimed at China, Canada, and Mexico, raised concerns about inflation and could lead to higher interest rates, prompting investors to pull back from riskier assets like cryptocurrencies. The news caused Bitcoin to dip below the $100K mark, triggering a wave of liquidations across long positions. This uncertainty is reflective of the broader market sentiment, as global trade tensions continue to escalate.
Despite the recent volatility, Bitcoin’s performance is still being closely monitored by analysts. Dan Gambardello, a prominent figure in the crypto space, downplays the significance of Trump’s tariffs, arguing that institutional interest in cryptocurrencies remains strong. BlackRock’s ongoing investments in Bitcoin and Ethereum signal that major financial players continue to have faith in the market’s long-term potential.
Looking ahead, the February 7th U.S. non-farm payrolls (NFP) report will be a key factor in determining Bitcoin’s next move. If the unemployment rate remains stable around 4.1% to 4.2%, Bitcoin could experience another upward swing, with some analysts speculating a price target between $120K to $150K. This data could provide crucial insight into the strength of the U.S. economy, influencing investor sentiment toward risk assets like Bitcoin.
However, Bitcoin’s bullish trajectory could face challenges if the market reaches a cycle top. Some analysts, including Cowen, caution that another rally in the short term could signal the end of the current bullish phase, much like the market peak in April 2021. As Bitcoin navigates this uncertain period, investors will need to stay vigilant for signs of a shift in the market trend.
While Bitcoin has experienced recent volatility due to global trade tensions, analysts remain cautiously optimistic about its future. Key economic reports, like the February 7th NFP data, will be pivotal in determining whether Bitcoin can maintain its upward momentum.
“Bitcoin is nearing a ‘decision time,’ and upcoming U.S. economic data could determine its next move.” – Benjamin Cowen.
