Bitcoin Drops to $91,530 Before Bouncing Back: Trump's Fault?

On February 3, 2025, bitcoin reached a local low of $91,530, before rebounding to $95,306 later in the day. This drop came after China, Canada, and Mexico promised severe retaliatory measures in response to the tariffs imposed by the Trump administration. These measures heightened fears of a global trade war, prompting investors to move away from risky assets, including cryptocurrencies.

Bitcoin Reacts Negatively to Retaliatory Measures

The announcements of retaliatory measures by Canada, Mexico, and China against the tariffs imposed by Trump, intensified investor anxiety, pushing them to reduce their exposure to risky assets. This situation led to a drop in bitcoin to $91,000, far from its recent historical peak of $109,000 reached on January 20, 2025.

Bitcoin, as a non-correlated asset, is supposed to offer protection against inflation and economic uncertainties. However, the reality is that, in a climate of instability, even traditional assets considered safe havens can come under pressure. This situation thus creates a complex dynamic where investors react irrationally to economic news, leading to extreme volatility.

Possible Upcoming Rise of BTC?

Recent developments in the crypto market suggest a possible upcoming rise in bitcoin. Although small investors appear to be fleeing the asset, institutions continue to accumulate it, thereby strengthening its market position. Moreover, BTC’s dominance has once again crossed the 60% mark, while many altcoins are collapsing.

This situation could indicate a return of interest in bitcoin as a safe haven asset. This may lead to a potential rise in its price as institutional demand grows, and uncertainty weighs on other cryptocurrencies.

Although bitcoin has recently shown increased sensitivity to macroeconomic developments, long-term prospects remain positive. The crypto market is currently undergoing a general correction, with Bitcoin recording a 7.3% drop over the past seven days, according to CoinMarketCap—a trend attributed to the underlying factors driving the recent crypto downturn.