On February 3, 2025, Bitcoin reached a local hollow at 91,530 dollars, before recovering at 95,306 dollars later in the day. This drop comes after China, Canada and Mexico have promised severe retaliatory measures following the customs prices imposed by the Trump administration. These measures have revived the fears of a world trade war, encouraging investors to turn away from risky assets, including cryptocurrencies.
Bitcoin reacts negatively to retaliatory measures
The announcements of retaliatory measures by Canada, Mexico and China in the face of customs prices imposed by Trump, intensified anxiety of investors, pushing them to reduce their exposure to risky assets. This situation led to a drop in bitcoin to $ 91,000, far from its recent historic summit of $ 109,000 reached on January 20, 2025.
Bitcoin, as an unreasonable actor, is supposed to offer protection against inflation and economic uncertainties. However, the reality is that, in a climate of instability, even the traditional active Considered refuge can undergo pressures. This situation therefore creates a complex dynamic where investors irrationally react to economic news, resulting in extreme volatility.
An upcoming increase in BTC?
Recent developments on the Crypto market suggest a possible upcoming increase in Bitcoin. Although small investors seem to flee the assets, the institutions accumulate it, thus strengthening its position on the market. In addition, the domination of the BTC has again crossed the 60 %mark, while many altcoins collapse.
This situation could indicate a return of interest in Bitcoin as an active refuge. Then causing a potential increase in its price as institutional demand grows, and that uncertainty weighs on other cryptocurrencies.
Although Bitcoin has recently shown increased sensitivity to macroeconomic developments, long -term perspectives remain positive. The Crypto market is currently undergoing a general correction, with Bitcoin displaying a drop of 7.3 % over the last seven days, according to CoinmarketCap, an evolution which is explained by the causes of the recent fall in cryptos.
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