.png){kind=logo}
Bitcoin (BTC) is trading at $99,439 as of February 4, 2025. This price reflects a 5.85% increase from the previous session. The trading range has been broad, with Bitcoin price reaching a high of $102,591 and a low of $93,947 during the day. Volatility remains high, with traders reacting to economic and political events.
Market conditions continue to push Bitcoin in different directions. Recent economic developments, especially related to international trade policies, have played a crucial role in determining its value. Bitcoin experienced a sharp decline earlier this month, but the cryptocurrency rebounded after major policy announcements.
Bitcoin price fluctuations align with the latest tariff developments in the United States. On February 1, President Donald Trump announced new tariffs on imports from Canada, Mexico, and China. This announcement sent shockwaves through the financial markets, including cryptocurrencies.
Bitcoin dropped from $105,000 to approximately $92,000 following this news. Investors feared that increased trade restrictions could hurt global markets and reduce liquidity in riskier assets like cryptocurrencies.
A turnaround occurred when Trump temporarily suspended tariffs on Canada and Mexico. This decision improved sentiment across financial markets, allowing Bitcoin to climb back above $100,000. Investors interpreted this pause as a sign that trade tensions might not escalate further. This optimism fueled renewed buying interest, lifting Bitcoin toward $102,000 before it stabilized.
Bitcoin price action has established crucial support and resistance levels. Analysts have identified $92,000 and $87,000 as major support zones. If Bitcoin breaks below these levels, selling pressure could increase, sending the cryptocurrency toward the $74,000 range.
On the upside, Bitcoin faces resistance near $106,000. A decisive break above this level could trigger fresh bullish momentum, pushing the price toward $110,000 and beyond.
The Relative Strength Index (RSI) suggests that Bitcoin remains in a neutral zone. It has not yet reached overbought or oversold conditions, which indicates that the price could move in either direction depending on upcoming market events.
Institutional investors continue to influence Bitcoin price. Hedge funds, venture capital firms, and corporate treasuries remain active participants in the cryptocurrency market. SkyBridge Capital founder Anthony Scaramucci recently highlighted Bitcoin’s long-term potential. He emphasized that institutional adoption and favorable regulations could drive Bitcoin to new highs in the next two years.
Bitcoin’s ability to hold above key support levels suggests that long-term investors continue to accumulate the asset. Many analysts believe that increased regulatory clarity in major economies will further accelerate institutional interest in Bitcoin.
The broader macroeconomic environment also impacts Bitcoin’s performance. The U.S. dollar has fluctuated in response to trade policies and interest rate expectations. A weaker dollar often benefits Bitcoin, as investors seek alternative stores of value.
The Mexican peso and Canadian dollar rebounded after the U.S. government delayed tariffs. This development helped stabilize global markets, including cryptocurrencies. Bitcoin’s correlation with major financial indices suggests that investors remain cautious about geopolitical risks but continue to see Bitcoin as a hedge against uncertainty.
Central banks worldwide are also playing a role in shaping Bitcoin’s trajectory. The Federal Reserve and European Central Bank have signaled a cautious approach to interest rate adjustments, which could lead to higher liquidity in global markets. Lower interest rates generally benefit risk assets, including Bitcoin, by making alternative investments more attractive.
Bitcoin’s next move depends on several key factors. The following events will likely shape its price action in the coming weeks:
Trade policy developments: Any further announcements regarding U.S. tariffs could create volatility in financial markets, including Bitcoin.
Regulatory updates: Governments worldwide are working on clearer cryptocurrency regulations. Favorable policies could support further adoption and price appreciation.
Institutional demand: Large investment funds and corporate treasuries continue to explore Bitcoin as part of their portfolios. Increased allocations could drive prices higher.
Macroeconomic trends: Inflation data, interest rate decisions, and global liquidity conditions will influence Bitcoin’s attractiveness as a hedge against traditional financial risks.
Bitcoin price action on February 4, 2025, reflects a complex interplay of economic, political, and market forces. The cryptocurrency surged above $99,000, recovering from its earlier drop caused by U.S. trade policy uncertainty. Technical indicators suggest that Bitcoin remains in a neutral zone, with key support at $92,000 and resistance at $106,000.
Institutional investors continue to support Bitcoin, and macroeconomic factors remain in focus. As regulatory clarity improves and adoption increases, Bitcoin’s long-term outlook remains strong. However, short-term volatility is likely to persist as markets react to global events. Traders and investors should watch for policy changes, institutional moves, and economic data releases to anticipate Bitcoin’s next price movement.
