Bitcoin's price hit a three-month low, falling 8% due to the announcement of new tariffs by President Donald Trump.
Trade War Escalation and Its Impact on Cryptocurrencies
On February 1, Donald Trump announced tariffs: 25% on imports from Canada and Mexico, and 10% on Chinese goods, effective February 4, 2025. This caused a sharp decline in global markets. The CoinDesk 20 Index fell 17%, Ethereum dropped 20% to $2,500, Solana slid 13% to $184, and XRP crashed 28% to $2.00.
Bitcoin ETFs Gain Popularity Despite Sell-Off
Amid market turmoil, U.S. spot Bitcoin ETFs attracted $4.94 billion in net inflows during January 2024. BlackRock's iShares Bitcoin Trust led with $3.2 billion, followed by Fidelity's FBTC with $1.3 billion.
Expert Predictions for Short-Term Bitcoin Price
Analysts expect further price volatility. Ryan Lee of BitGet Research predicts a correction to $95,000, while Arthur Hayes of BitMEX warns of potential drops. Uncertainty is heightened by the rising dollar index and U.S.-China tensions.
Key variables influencing Bitcoin's future trajectory include the implementation details of Trump's tariffs, global retaliation measures, and sustained ETF demand.
