Bitcoin (BTC) is down 1.4% to $95,680 this
week, recovering slightly from its low of $93,322. The broader crypto market is
under pressure due to an unfavourable macroeconomic environment, with U.S.
inflation rising to 3.0% YoY in January—the highest reading in seven months.
Federal Reserve (Fed) Chair Jerome Powell signalled a hawkish stance,
indicating that interest rate cuts are unlikely unless inflation shows a
sustained decline.
However, U.S. President Donald Trump countered
this negative sentiment by urging the Fed to cut interest rates. He also
ordered an investigation into import tariffs imposed on the U.S. by other
nations, suggesting a more measured approach to trade negotiations rather than
immediate retaliatory tariffs. This news pushed BTC up by 2.0% last week.
Despite this, Trump later reignited tariff
concerns on pharmaceuticals, semiconductors, and vehicles, proposing a 25% levy
with gradual increases. The announcement caused Bitcoin to drop 3.0%.
Institutional activity also weakened, with Bitcoin ETFs—including IBIT
(BlackRock), FBTC (Fidelity), and GBTC (Grayscale)—experiencing net outflows of
$278.59 million last week, breaking a 19-week streak of net inflows. While
mid-2025 price targets of $150,000–200,000 remain intact, Bitcoin faces
short-term downside risk below $90,000 unless new catalysts emerge.
Meanwhile, memecoin speculation continues to
reach extreme levels. Argentine President Javier Milei is facing fraud
allegations after promoting LIBRA, a memecoin he claimed would boost economic
growth by funding small businesses and startups. Following his endorsement,
LIBRA surged by 4,000% within hours on February 14, only to collapse by 95%
after early buyers reportedly took $100 million in profits. Milei later deleted
his post and admitted he had likely made a mistake. Some opposition politicians
are even suggesting the possibility of an impeachment trial.
Adding to the market spectacle, Seán Murray,
president of deBanked, suggested that Jack Dorsey, co-founder of Twitter, could
be the true Satoshi Nakamoto. He pointed out that Bitcoin’s first-ever
transaction supposedly occurred on Dorsey’s mother’s birthday, while Satoshi
mined their final block on Dorsey’s father’s birthday. This speculation stems
from concerns that Satoshi Nakamoto, who is believed to hold 1.1 million BTC
(worth approximately $103 billion), could trigger a market crash if he were to
sell. However, such theories remain unsubstantiated, and the true identity of
Satoshi is unlikely to be revealed unless he chooses to disclose it himself.