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Bitcoin Price Prediction: Escalating Trump Tariffs Drive $93,000 Drop

  • Bitcoin dropped 8% to $93,101 amid escalating tariffs and broader market volatility.
  • Nearly $1.3B in long positions were liquidated in 12 hours, wiping out significant BTC and ETH values.
  • Bitcoin’s market dominance remains at 60.59%, supported by robust ETF inflows.
  • Technical analysis suggests the dip may be a temporary correction within a longer-term uptrend.

Bitcoin (BTC) price plummeted 8% to $93,101 on Monday, marking its sharpest single-day decline in three months. This happened as global markets reacted to outgoing President Donald Trump’s newly announced tariffs.

BTC/USDT Chart: Trading View
BTC/USDT Chart: Trading View

According to CoinGlass data, the crypto market saw over $1.3 billion in leveraged positions liquidated within 12 hours. This included $300 million in Bitcoin and $400 million in Ethereum (ETH).

Tariff Turmoil Triggers Crypto Carnage

On February 1, President Trump unveiled tariffs of 25% on imports from Canada and Mexico. As well as, 10% on Chinese goods, set to take effect on February 4, 2025.

The European Union pledged retaliation, while BBC sources suggested the UK might secure exemptions. Markets responded immediately: The CoinDesk 20 Index tumbled 17%, Ethereum plunged 20% to $2,500, Solana (SOL) slid 13% to $184, XRP crashed 28% to $2.00, and Trump’s namesake memecoin (TRUMP) fell 12%.

Bitcoin’s drop coincided with a 4% rally in the U.S. Dollar Index (DXY) since October 2023, intensifying pressure on risk-sensitive assets.

Bitcoin ETFs and Dominance Defy Sell-Off With Record Inflows

Despite the broader market turmoil, U.S. spot Bitcoin ETFs attracted $4.94 billion in net inflows during January 2024. BlackRock’s iShares Bitcoin Trust (IBIT) led with $3.2 billion, followed by Fidelity’s FBTC at $1.3 billion, Bitwise’s BITB with $125 million, and Grayscale’s Mini Trust adding $398.5 million.

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Bitwise Chief Investment Officer Matt Hougan projected annual inflows could reach $50 billion, drawing parallels to gold ETFs, which doubled flows in their second year between 2004 and 2005.

Bitcoin’s market share rose to 60.59%, per CoinMarketCap, as investors flocked to its liquidity during the volatility.

Jeff Park, Head of Alpha Strategies at Bitwise, labeled Bitcoin his “highest conviction macro trade,” comparing current trade tensions to the 1985 Plaza Accord, which weakened the U.S. dollar and fueled inflation in trading partners.

Analysts Split on Short-Term Bitcoin Price Prediction

Traders braced for further volatility as U.S. futures markets reopened. Ryan Lee of BitGet Research Bitcoin price prediction forecast a correction to $95,000, while BitMEX co-founder Arthur Hayes reiterated warnings of post-inauguration sell-offs.

Pseudonymous analyst Van Nuener cautioned that “downward pressure” could persist. The DXY’s strength and China-related risks—including potential Nvidia export restrictions and the rise of DeepSeek R1, an open-source AI competitor—added to market uncertainty.

Bitcoin Price Key Factors to Monitor

Critical variables influencing Bitcoin’s trajectory include the implementation details of Trump’s tariffs, global retaliation measures, sustained ETF demand, the DXY’s momentum, and escalating U.S.-China tech tensions.

The Wall Street Journal editorial board criticized Trump’s policy as the “Dumbest Trade War in History,” yet Bitcoin’s growing institutional ETF adoption may provide stability amid the chaos.

Disclaimer

The contents of this page are intended for general informational purposes and do not constitute financial, investment, or any other form of advice. Investing in or trading crypto assets carries the risk of financial loss. The forecasted data (also called “price prediction”) on this page are subject to change without notice and are not guaranteed to be accurate.

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Arnold Kirimi
Arnold Kirimi
Arnold Kirimi is a crypto and Web3 journalist from Nairobi, Kenya. With a sharp eye for emerging trends and a talent for demystifying blockchain jargon, Kirimi turns complex concepts into compelling narratives. Featured in top outlets like Cointelegraph, DailyCoin and CryptoSlate.