On February 3, 2025, bitcoin reached a local low of $91,530, before rebounding to $95,306. This drop came after promises of retaliatory measures from China, Canada, and Mexico in response to tariffs imposed by the Trump administration.
Bitcoin Reacts to Global Powers' Measures
The announcements of retaliatory measures by Canada, Mexico, and China heightened investor anxiety, pushing them to reduce exposure to risky assets, including cryptocurrencies. This situation led to a drop in bitcoin to $91,000, far from its recent peak of $109,000 on January 20, 2025.
Possible Upcoming Rise of Bitcoin
Recent developments in the crypto market suggest a possible upcoming rise in bitcoin. Although small investors appear to be retreating from the asset, institutional players continue to accumulate it, thereby strengthening its market position. BTC’s dominance has once again surpassed 60%, while many altcoins are collapsing. This could indicate a return of interest in bitcoin as a safe haven asset.
Current State and Long-Term Prospects
Although bitcoin has recently shown increased sensitivity to macroeconomic developments, long-term prospects remain positive. The crypto market is currently undergoing a general correction, with bitcoin recording a 7.3% drop over the past seven days. This trend is attributed to underlying factors driving the recent crypto downturn.
The unstable geopolitical situation impacts the cryptocurrency market, creating risks and opportunities for investors. Despite the volatility, institutional investments could have a stabilizing effect and potentially lead to bitcoin's growth in the future.
