Bitcoin (BTC) is up 1.1% this week to $96,268,
retreating from a high of $98,453 on Tuesday. Market sentiment remains cautious
after U.S. President Donald Trump announced another wave of tariffs last Friday
without specifying targets. BTC declined 0.8% on the news, following broader
market losses. While steel and aluminum imports into the U.S. now face 25%
levies, fears of tariffs on the European Union have not materialized, allowing
markets to recover slightly.
A positive development came from the U.S. Securities
and Exchange Commission (SEC) and Binance, which called for a 60-day pause in
their trial, citing the formation of a new SEC crypto task force that could
resolve the dispute. This reinforces confidence in a pro-crypto stance from the
new administration, leading Bitcoin to gain 2.3%. However, Federal Reserve
(Fed) Chair Jerome Powell tempered enthusiasm by stating that the U.S. economy
remains strong and that there is no urgency in cutting interest rates. This
hawkish stance, though expected given Trump’s inflationary tariff policies,
erased BTC’s gains, stabilizing prices around $96,000.
Institutional interest in crypto remains
strong. Franklin Templeton, managing $1.68 billion, has filed an application
with the SEC for a spot Solana ETF, competing with Grayscale and Canary.
Goldman Sachs also increased its crypto holdings by over 80%
quarter-over-quarter in Q4 2024. The rising institutional involvement signals
confidence, but market analysts warn of potential correction risks. Andre
Dragos, head of Research at Bitwise Europe, highlighted pressure levels similar
to June 2022, when BTC lost 36% in a month.
Bitcoin’s struggle to break the $100,000 mark
may indicate an overbought market. Spot Bitcoin ETFs, including IBIT from
BlackRock, FBTC from Fidelity, and GBTC from Grayscale, reported $447 million
in net inflows last week, down from $572.2 million in the prior week. While the
mid-2025 BTC price targets remain at $150,000–$200,000, a correction to $90,000
is becoming the baseline scenario unless BTC can decisively break and hold
above the $106,000–$108,000 resistance zone.