6:00
3
min at reading ▪
3 February 2025 reached a bitcoin local cavity for $ 91,530 before recovering to $ 95,306 later on a day. This decline comes after China, Canada and Mexico promised serious retaliatory measures after customs prices imposed by Trump administration. These measures revived concerns about the World Trade War and encouraged investors to turn away from risk assets, including cryptocurrencies.
Bitcoin negatively responds to retaliation measures
Notice of repair measures in Canada, Mexico and China in the face of the customs prices stored by Trump, intensified the anxiety of investors and pushed them to reduce their exposure to risk assets. This situation led to a decline in bitcoins to $ 91,000, far from the recent historical summit of $ 109,000, which reached 20 January 2025.
Bitcoin, as a disproportionate actor, should offer protection against inflation and economic uncertainty. However, the fact is that in climate of instability, traditional assets can also consider insults to undergo pressure. This situation therefore creates a complex dynamics where investors react to economic reports, resulting in extreme volatility.
The upcoming BTC increase?
Recent developments on the market crypto indicate a possible upcoming increase in bitcoins. Although small investors seem to escape from assets, the institution accumulates them, strengthening its position on the market. In addition, the BTC dominance has exceeded 60 %again, while many altcoins collapsed.
This situation could indicate the return of interest in bitcoins as an active refuge. It then causes a potential increase in the price with increasing institutional demand and this uncertainty weighs to further cryptocurrencies.
Although bitcoin has recently shown increased sensitivity to macroeconomic development, long -term perspectives remain positive. The Krypto market is currently undergoing general correction, with bitcoins in the last seven days have a decrease of 7.3 %, according to Coinmarketcap, an evolution that explains the causes of the recent decrease in cryptos.
Maximize your Cointribne experience with our “Read to Earn” program! For each article you read, get points and approach exclusive rewards. Sign up now and start to accumulate benefits.
The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.