Bitcoin‘s market performance took a significant hit on February 3, 2025, with the price dropping to approximately $94,450, reflecting a noticeable decline from the previous day’s high. This marks a continuation of the cryptocurrency’s recent volatility, as it faces heightened uncertainty stemming from global economic and trade concerns.
The recent drop in Bitcoin’s value coincides with the announcement on February 2, 2025, by U.S. President Donald Trump of new tariffs affecting global trade. The tariffs, which include a 25% levy on imports from Mexico and Canada and a 10% tax on goods from China, have spooked markets. Investors, concerned about the implications of a potential trade war, have been adjusting their portfolios, moving away from riskier assets like cryptocurrencies. As a result, Bitcoin’s market capitalization fell to approximately $1.953 trillion, down from $1.995 trillion, marking a 2.14% decrease in a single day.
The bearish sentiment in the broader market has also spilled over into Bitcoin. On February 2, 2025, Bitcoin’s price plummeted to a 20-day low of $91,231, triggering liquidations worth $1.8 billion across the cryptocurrency derivatives market. This sharp downturn was particularly impactful for leveraged traders, with significant positions being wiped out as Bitcoin breached key support levels. As a result, exchanges were forced to close undercollateralized positions, exacerbating the price fall.
Despite the significant drop, Bitcoin has demonstrated resilience, holding above $90,000 as of the latest trading data. Analysts are watching closely to see if the cryptocurrency can maintain support above $90,500. If it does, there could be a potential for a rebound, with targets set around $96,150. A sustained rally above these levels would indicate that Bitcoin could recover some of the losses and push toward higher price targets in the near term.