According to the most recent edition of The Bitcoin Report, despite Bitcoin’s (BTC) daily low reaching $91,341.25 due to Donald Trump’s comments on tariffs on February 3, BTC is structurally still strong. “Bitfinex Alpha” report.
Bitcoin surged at the beginning of the year, gaining over 10% in January and reaching an all-time high of $109,590 on Jan.20, coinciding with Trump’s inauguration. The rally, however, was brief, as Bitcoin ended January at $102,470, before beginning a downward spiral in early February.
Bitcoin’s price has been fluctuating within a range of 15% since mid-November. Two peaks have formed near $108,000. According to past patterns, such fluctuations usually resolve in 80-90 days. This suggests that there could be a big move coming up.
Bitcoin has mirrored US equity markets’ reactions to macroeconomic developments. The S&P 500 index (SPX) formed a similar double-top pattern, with peaks occurring around Trump’s inauguration and ahead of the recent US tariff announcements.
The US announced on Jan. 31 a tariff hike of 25% on imported goods from Canada, Mexico and China and an additional 10% on those from China. SPX closed at 6,040.53 after a 0.5% drop as investors assessed possible impacts on corporate earnings.
Bitcoin’s sharper drop reflects its tail-risk status. In the first week of February, after reaching an intraday maximum of $106,040 Jan. 31 it dropped to $91,657.
While traditional markets were closed, this downward pressure persisted over the past weekend. The SPX-Bitcoin correlation has strengthened, with Bitcoin’s 30-day rolling Pearson correlation reaching a five-month high of 0.8.
CryptoSlate’s data shows that Bitcoin is trading at $101,631 as of time of publication.
Economic Implications
Bitfinex analysts estimate that the tariff increases could reduce S&P 500 earnings by 2.8%, raise core inflation by 0.7%, and lower US GDP by 0.4%. Materials and consumer discretionary companies, especially those with North American supply chain, will be the most affected.
Bitcoin, despite its macroeconomic vulnerability, has demonstrated resilience over longer timeframes. Bitcoin is a structurally stable asset, while other risky assets are experiencing corrections.
The market gained 9.4% while other traditional markets’ trend was more gradual.
Bitcoin and equity prices diverged after the Republican win in November 2024. The S&P 500 initially declined before rebounding to new highs. Bitcoin, which was trading near $67,000 when the elections were held, surged over $100,000 and maintained its strength throughout January.
Bitcoin’s price has remained elevated despite a recent drop. It is still above the key resistance levels of history. It suggests that despite the short-term volatility, Bitcoin will continue to be adopted and used for macro positions.
Bitcoin Market Data
The time of the press The date is February 3, 2025 at 11:03 UTCBitcoin has the largest market capitalization and is currently trading at a price of You can also check out our Facebook page. 3.91% Over the past 24 hour. Bitcoin is valued at 2.02 trillion dollars The 24-hour volume trading is $118.62 Billion. Learn more about Bitcoin ›
Bitcoin
The date is February 3, 2025 at 11:03 UTC
$101,774.71
3.91% Crypto Market Analysis
The time of the press The date is February 3, 2025 at 11:03 UTCThe crypto market has a total value of at 3 Trillion Dollars A 24-hour volume is The $372.09 billion. Bitcoin dominates the market at 60.09%. Learn more about the crypto market ›
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