Key Takeaways:
- Bitcoin fell to $91,530, marking a three-week low before rebounding to $95,306.
- Market jitters followed Trump’s new tariffs on China, Canada, and Mexico.
- Analysts warn that rising geopolitical tensions could drive more volatility.
- Predictions for 2025 still point to Bitcoin reaching $160K–$180K despite short-term dips.
Bitcoin’s price took a hit early on February 3, dropping to $91,530 before rebounding to $95,306, according to Cointelegraph Markets Pro data.
The sell-off came amid rising concerns over a global trade war after President Donald Trump announced new import tariffs targeting China, Canada, and Mexico.
Why Is Bitcoin Dropping?
The crypto market reacted sharply to Trump’s tariff announcement on February 1, with investors moving away from riskier assets, including Bitcoin.
When Trump launched the tariff war in 2018, the SP500 (-12%), ACWI (-12%), China (-17%), and Bitcoin (-65%) dropped in span of few weeks. pic.twitter.com/CI410keK2M
— RunnerXBT (@RunnerXBT) February 3, 2025
Adding to market fears, China, Canada, and Mexico all vowed retaliatory measures, creating further uncertainty.
What’s Next for Bitcoin?
Despite this short-term dip, analysts still believe Bitcoin could rally in 2025, with predictions ranging from $160,000 to $180,000.
🚨🚨 MICHAEL SAYLOR 👇
— Crypto Aman (@cryptoamanclub) February 3, 2025
When I started buying #Bitcoin in 2020, I was thinking, oh no, I have to do this quickly because someone is going to figure this out and the price will go up 10 times and I better buy it before it goes up 10 times.” pic.twitter.com/OZTKphKDoh
However, some analysts warn that Bitcoin could drop below $70,000 in the coming weeks before making a strong comeback.
Final Thoughts
Bitcoin’s latest price action proves that, while it’s often called “digital gold,” it’s not immune to macro events and economic policy shifts. While short-term uncertainty remains, long-term market sentiment still favors Bitcoin’s rise.
With analysts still predicting six-figure prices in 2025, is this dip an opportunity—or a warning?