The crypto market enjoyed a sharp recovery on Feb. 4, with Bitcoin surging past the $102K mark after experiencing a sharp drop the day before.
Bitcoin (BTC) climbed above $102 after hitting a low of approximately $91,229 the day before following the announcement of major tariff hikes by the U.S. President Donald Trump. Renowned crypto market analyst Michael van de Poppe noted on X that Bitcoin’s quick rebound was expected due to market volatility. He said that a new ATH is likely in Feb. on the condition that Bitcoin stays above $93,000 level.
https://twitter.com/CryptoMichNL/status/1886680087451545736
Bitcoin’s drop on Feb. 3 was triggered by market fears surrounding Trump’s decision to impose 25% tariff hikes on Canada, Mexico, and China, raising concerns over a potential trade war. However, the Feb. 4 rebound came as a result of Trump’s subsequent move to temporarily halt the tariff hikes on Canada and Mexico after phone calls with the Mexican President and Canadian Prime Minister.
Another likely driver of Bitcoin’s recovery was the massive liquidation of speculative bets on Feb. 3. This event marked the worst single-day liquidation in history, surpassing even the collapses of Terra (LUNA) and FTX, according to crypto analyst Miles Deutscher. As short sellers scrambled to cover their losses, a surge of buying pressure fueled Bitcoin’s upward momentum, pushing its value even higher.
https://twitter.com/milesdeutscher/status/1886255840161870019 Read more: Crypto crash wipes out $2.2B—Worse than FTX and LUNA
Finally, the signing of a new executive order by the U.S. President directing the creation of a sovereign wealth fund, which will be spearheaded by the U.S. Treasury and Commerce Departments, might have fueled further interest in Bitcoin.
https://twitter.com/JoeConsorti/status/1886480388979351615 You might also like: Van de Poppe predicts potential for new ATH in the coming weeks as BTC Hits $105K
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