Bitcoin (BTC) is up 1.1% this week to $98,047,
rebounding from a sharp 5.8% decline to $91,188 on Monday, its lowest level
since January 13. Prices later recovered, reaching a peak of $101,917. Monday
sell-offs are becoming a pattern. Last week, BTC tumbled 6.4% on January 27
after Donald Trump announced new tariffs on Colombia. This time, tariffs on
Mexico, Canada, and China triggered another market-wide sell-off, with BTC
dropping 10.8% between Saturday and Monday. Ethereum (ETH) also plunged 37.2%
to $2,082.
Trump’s stance on tariffs is disappointing for
crypto enthusiasts. According to CoinGlass, traders lost $2.2 billion in just
three days, while Bybit CEO Ben Zhou estimates total liquidations could reach
$8–10 billion—a record for the market. Trump reacted quickly, postponing
tariffs on Mexico and Canada for 30 days and signing an executive order to
create the nation’s first sovereign wealth fund. Market speculation suggests
Bitcoin could be part of this reserve, hinted at by Senator Cynthia Lummis in an
X post, where she replaced the ‘B’ in “Big deal” with a Bitcoin symbol.
However, China retaliated by imposing tariffs
on U.S. coal, oil, and LNG, causing Bitcoin to drop another 5%. The White House
has scheduled Trump-Xi talks on Wednesday or Thursday, which could bring more
volatility. Institutional activity is slowing down. Spot Bitcoin ETFs from
BlackRock (IBIT), Fidelity (FBTC), and Grayscale (GBTC) saw net inflows drop to
$578.2 million, down from $1.8 billion the previous week, but still above the weekly
average.
Bitcoin’s mid-2025 price target of
$150,000-$200,000 remains intact, with potential for even higher levels. This
week will be crucial in determining BTC’s trajectory: a break above $110,000
would extend the current uptrend, while a drop below $90,000 could signal a
correction before the next leg up.