Bitcoin price fluctuates as Trump tariffs, FTX repayments, and geopolitical tensions impact the cryptocurrency market.
Bitcoin (BTC) price hovered around $97,000 on Friday after experiencing a nearly 5% decline over the past three days. A recent report by CryptoQuant revealed that activity on the Bitcoin network had plunged to its lowest point in a year. Traders are closely monitoring FTX 's scheduled repayments to creditors, slated to commence on February 18th. These repayments could potentially introduce significant volatility into Bitcoin's price trajectory.
Bitcoin's journey this week began with a sharp correction, dipping as low as $91,231. This downturn was primarily attributed to the implementation of US President Donald Trump's announced tariffs on key trading partners, including China, Canada, and Mexico, on Saturday. These tariffs exerted some downward pressure on the overall cryptocurrency market. However, later in the day, a positive shift occurred as Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau announced conversations with US President Trump, resulting in a 30-day pause on the tariffs. Both nations agreed to engage in negotiations on security and trade cooperation with the US, leading to a more optimistic market sentiment. BTC subsequently recovered and closed above $101,300 on Monday.This price drop triggered a wave of liquidations across the cryptocurrency market, resulting in a staggering $1.72 billion in total liquidations that day. Bitcoin accounted for approximately $373 million of these liquidations, according to data from CoinGlass. Ben Zhou, CEO of the Bybit exchange, estimated the real total liquidation figure to be significantly higher, potentially around $8-10 billion. He pointed out that Bybit's 24-hour liquidation alone amounted to $2.1 billion, a figure considerably surpassing the $333 million reported by CoinGlass.Bitcoin's recovery from Monday's fall was short-lived. A subsequent announcement from China's finance ministry unveiling a package of tariffs on various US products, including crude oil, farm equipment, and some automobiles, immediately countered the previous optimism. These tariffs were perceived as a direct response to the 10% tariff on Chinese imports imposed by US President Donald Trump, causing a 3.5% decline in BTC on Tuesday. Despite a positive macroeconomic outlook expressed by US Treasury Secretary Scott Bessent on Wednesday, Bitcoin's price continued to decline, closing below $96,700. Bessent emphasized the administration's focus on reducing 10-year Treasury yields rather than the Fed's benchmark short-term interest rate, noting that US President Donald Trump desired lower interest rates. This stance is generally considered bullish for risky assets like Bitcoin.However, positive comments on Bitcoin from Eric Trump, son of the US President, on Thursday failed to provide any substantial support, resulting in a slight decline in BTC, closing at $96,552. Eric Trump encouraged the inclusion of BTC in the portfolio of World Liberty Financial, a cryptocurrency platform backed by his family. Looking ahead, Bitcoin is expected to experience potential volatility due to FTX's upcoming repayments to creditors, scheduled to begin on February 18th. The bankrupt exchange intends to start repaying creditors with claims below $50,000, particularly those in the Bahamas, offering 9% interest per annum from November 11, 2022. FTX, which filed for bankruptcy in November 2022 with an estimated debt of $11.2 billion, anticipates payouts totaling up to $16.5 billion. The exchange aims to raise additional funds by selling assets and investments in tech firms.
BITCOIN CRYPTOCURRENCY FTX TARIFFS DONALD TRUMP MARKET VOLATILITY
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