Recent Decline in Bitcoin Trading Between $95,850 and $97,729
Recently, Bitcoin has shown weakness, trading between $95,850 and $97,729. The current market capitalization stands at approximately $1.917 trillion, with global trading volume reaching $4.752 billion. The daily price range is between $95,850 and $99,131, which is 11% lower than the all-time high. Many investors are hoping for a recovery soon, but several obstacles still exist in the market. Let us examine the current situation of the Bitcoin market based on the analysis from 10X Research.
[What Are the Causes of Bitcoin’s Decline?]
Recent geopolitical instability has been affecting the market, making it difficult for Bitcoin to break the $100,000 mark. 10X Research pointed out the downturn that started on February 2, highlighting that a "Diamond Top" pattern is emerging. This pattern typically indicates a likelihood of price declines following an upward movement. In other words, Bitcoin may be in a position to give back some of the gains made after the rally in November.
Bitcoin previously attempted to break the $105,500 target, but several factors hindered this effort:
- Announcement of Tariff Policies by President Donald Trump: The imposition of new tariffs has led to increased market uncertainty and shaken investor confidence.
- Federal Reserve's Hawkish Interest Rate Policies: With the U.S. Federal Reserve maintaining a conservative stance on interest rates, investors have adopted a more cautious approach.
[Impact of Ethereum and Altcoins]
While Bitcoin attempts to recover, Ethereum has experienced sharp declines, exacerbating the overall instability in the cryptocurrency market. Complex trading strategies, such as options gamma hedging and futures liquidations, have intensified price volatility.
Given that there has not been a strong rebound following previous large-scale Ethereum sell-offs, it is likely that current market pressures will persist.
Additionally, the recent announcement of new tariff policies by President Trump has triggered large-scale sell-offs across stocks, commodities, and cryptocurrencies. In particular, altcoins have suffered the most, with total market capitalization dropping from $1.46 trillion at the end of January to $1 trillion by February 3, resulting in an evaporation of approximately $460 billion in value.
[Outlook for the Future]
While Bitcoin's market dominance is increasing, this factor is acting as a hindrance to the growth of the altcoin market. At the same time, the Trump administration's policies on stablecoins are also pivotal in undermining investor confidence.
From a technical analysis standpoint, Bitcoin is sending bearish signals, and additional declines remain possible as long as economic uncertainties persist. Some experts expect that the market will stabilize soon, while others do not rule out the chance of further decline.
Given the current situation, investors need to maintain a cautious demeanor and closely observe market movements. It is crucial to formulate an appropriate investment strategy while monitoring whether the market will rebound or experience further declines.
[Conclusion]
Bitcoin is experiencing a downturn due to various factors, leading to heightened market uncertainty. The economic policies of Trump, alongside the Federal Reserve's interest rate policies, are significant variables, and the volatility of Ethereum and altcoins is impacting the overall market.
As the current direction of the market remains unclear, investors should respond with caution. Continuously assessing economic policies and technical analysis while adjusting investment strategies would be a prudent approach.
This article does not constitute investment advice or financial recommendations. Cryptocurrency investments carry high risks, and the responsibility for any investment decisions lies solely with the investor.
