Bitcoin drops below $100K as US-China tariffs fuel market volatility
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Bitcoin’s attempt to reclaim the $100,000 mark was short-lived as renewed trade war tensions triggered a fresh wave of volatility. Despite an initial $10,000 rebound, BTC/USD reversed course following China’s retaliation against US tariffs, casting uncertainty over risk assets.
Tariff Uncertainty Halts Bitcoin’s Momentum
BTC/USD initially surged as markets cheered Trump’s 30-day tariff delay on Mexico and Canada, alongside his executive order for a sovereign wealth fund aimed at reinforcing US digital asset leadership. However, optimism faded quickly after China responded with 15% tariffs on US oil and coal, reigniting trade war fears. The sharp reversal saw Bitcoin dropping 3%, erasing gains from its $91,500 bounce and re-entering a volatile range.
Analysts Expect New All-Time Highs in February
Despite the pullback, traders remain bullish on Bitcoin’s trajectory. Crypto analyst Michaël van de Poppe noted that as long as BTC holds above $93,000, new all-time highs (ATHs) are likely this month. Other analysts, including Phoenix, suggest Bitcoin may now enter a new trading range as the market digests the latest macroeconomic shifts.
Funding Rates Flash Bullish Signal
On-chain indicators are reinforcing Bitcoin’s underlying strength. Analyst Axel Adler Jr. highlighted that funding rates turned negative for the seventh time this year, a pattern historically associated with bullish momentum. Additionally, Bitcoin’s relative strength index (RSI) has flashed a rare upside signal on shorter timeframes, further supporting the case for a potential breakout once macroeconomic uncertainty stabilizes.
Market Outlook: Key Levels to Watch
Bitcoin remains in a highly volatile phase, with $93,000 acting as a key support zone. A sustained move above $100,000 would shift momentum back in favor of bulls, while further weakness could see retracements toward $90,000 before the next major move. With geopolitical risks, Federal Reserve policy shifts, and regulatory developments all in play, Bitcoin’s next breakout could be driven as much by macroeconomic headlines as by technical strength.
Tariff Uncertainty Halts Bitcoin’s Momentum
BTC/USD initially surged as markets cheered Trump’s 30-day tariff delay on Mexico and Canada, alongside his executive order for a sovereign wealth fund aimed at reinforcing US digital asset leadership. However, optimism faded quickly after China responded with 15% tariffs on US oil and coal, reigniting trade war fears. The sharp reversal saw Bitcoin dropping 3%, erasing gains from its $91,500 bounce and re-entering a volatile range.
Analysts Expect New All-Time Highs in February
Despite the pullback, traders remain bullish on Bitcoin’s trajectory. Crypto analyst Michaël van de Poppe noted that as long as BTC holds above $93,000, new all-time highs (ATHs) are likely this month. Other analysts, including Phoenix, suggest Bitcoin may now enter a new trading range as the market digests the latest macroeconomic shifts.
Funding Rates Flash Bullish Signal
On-chain indicators are reinforcing Bitcoin’s underlying strength. Analyst Axel Adler Jr. highlighted that funding rates turned negative for the seventh time this year, a pattern historically associated with bullish momentum. Additionally, Bitcoin’s relative strength index (RSI) has flashed a rare upside signal on shorter timeframes, further supporting the case for a potential breakout once macroeconomic uncertainty stabilizes.
Market Outlook: Key Levels to Watch
Bitcoin remains in a highly volatile phase, with $93,000 acting as a key support zone. A sustained move above $100,000 would shift momentum back in favor of bulls, while further weakness could see retracements toward $90,000 before the next major move. With geopolitical risks, Federal Reserve policy shifts, and regulatory developments all in play, Bitcoin’s next breakout could be driven as much by macroeconomic headlines as by technical strength.