TL;DR
- The price of Bitcoin has fallen to $84,700 after a temporary spike to $87,000, affected by new trade tariffs between the U.S., Canada, and Mexico.
- Major altcoins, like Ethereum, BNB, and XRP, have suffered moderate losses, while Polkadot and Dogecoin have seen slight increases.
- Analysts are observing a “gap” in Bitcoin futures that could indicate support around $77,360, with the key monthly close for February helping to determine the future trend.
The price of Bitcoin has experienced a severe correction, falling back to $84,700 after reaching a temporary spike that took it to $87,000. The drop occurred after the United States confirmed the implementation of new trade tariffs against Canada and Mexico, set to take effect on March 4.
U.S. President Donald Trump announced that the tariffs would be applied as planned, which negatively affected financial markets. Stock indices, such as the S&P 500 and the Nasdaq Composite, opened lower, while the U.S. Dollar Index (DXY) increased by 0.6%, contributing to pressure on Bitcoin’s price.
The correlation between Bitcoin and stock markets has increased, which has reduced liquidity and affected the cryptocurrency’s performance. According to The Kobeissi Letter, retail investors have been the primary drivers of withdrawals from Bitcoin ETFs in the U.S., reaching six consecutive days of withdrawals totaling $2.1 billion.
What’s Happening with the Altcoin Market?
Regarding altcoins, the impact has been modest. In the last few hours, the main cryptocurrencies have experienced moderate value losses. The data from CoinMarketCap is as follows:
Ethereum (ETH) is currently priced at $2,309.55, with a 3.82% loss in the last 24 hours. BNB (BNB) is priced at $604.78, with a 2.72% drop in the last 24 hours. XRP (XRP) is at $2.20, with a 3.08% decrease in the last 24 hours. Cardano (ADA) is priced at $0.6601 and has dropped by 1.82% in the last 24 hours.
Solana (SOL) is priced at $137.76, with a slight increase of 0.19%. Polkadot (DOT) is at $5.02, with a 2.87% increase in the last 24 hours. Dogecoin (DOGE) is priced at $0.2089, having risen by 1.07% in the last 24 hours. Litecoin (LTC) is priced at $127.31, with a minimal change of 0.02%. Polygon (MATIC) is at $0.2773, with a 0.07% drop in the last 24 hours. Finally, TRON (TRX) is priced at $0.2276, with a decrease of 0.14%.
Can Bitcoin Revive?
Traders are watching potential reversal areas for BTC’s price, highlighting a “gap” in Bitcoin futures on the CME Group platform. This gap could coincide with a trend line from September 2023, suggesting that the price might find support around $77,360.
As for Bitcoin’s monthly close, analysts point out that it doesn’t look favorable, as the price would need to surpass $92,000 to confirm a bullish trend for February. If it fails to do so, it could indicate a price cap, with the speculative market seeing $92,000 as a key cost base
