🌎 Bitcoin Surges Past $102K After Sharp Decline

Bitcoin Surges Past $102K After Sharp Drop

The crypto market experienced a significant recovery on February 4, with Bitcoin soaring past the $102,000 mark after a sharp decline the previous day. The cryptocurrency’s value had dropped to approximately $91,229 on February 3 following the announcement of major tariff hikes by U.S. President Donald Trump.

Market Volatility and Rebound

Renowned crypto market analyst Michael van de Poppe noted that Bitcoin’s quick rebound was expected due to market volatility. He stated that a new all-time high (ATH) is likely in February if Bitcoin stays above the $93,000 level.

Bitcoin’s drop on February 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 February 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.

Massive Liquidation and Buying Pressure

Another likely driver of Bitcoin’s recovery was the massive liquidation of speculative bets on February 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. Key drivers of the rebound include:

Market volatility and expected rebound
Temporary halt on tariff hikes on Canada and Mexico
Massive liquidation of speculative bets
Surge of buying pressure

New Executive Order and Sovereign Wealth Fund

The signing of a new executive order by the U.S. President, directing the creation of a sovereign wealth fund, might have fueled further interest in Bitcoin. The fund will be spearheaded by the U.S. Treasury and Commerce Departments.