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.ย
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 Bitcoinโs 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.
#Bitcoin bounced back swiftly and is currently acting within the range.
I assume we'll see new ATHs in February and it's quite normal to correct after such a strong bounce.
Volatility through the roof, but, as long as Bitcoin remains above $93K, a new ATH is likely. pic.twitter.com/S7ycWtf6Pa
— Michaรซl van de Poppe (@CryptoMichNL) February 4, 2025
Bitcoinโs drop on Feb. 3 was triggered by market fears surrounding Trumpโs 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 Trumpโs 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 Bitcoinโs 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 Bitcoinโs upward momentum, pushing its value even higher.
$2.15b liquidated from the crypto market in the past 24 hours.
Worst liquidation event in history in a single day.
Worse than LUNA. Worse than FTX ($1.6b). pic.twitter.com/5yeQUtoHkR
— Miles Deutscher (@milesdeutscher) February 3, 2025
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.
Trump is tasking Howard Lutnick and Scott Bessent with creating a sovereign wealth fund for the United States.
Both are avowedly pro-Bitcoin. https://t.co/q5knKucFoP pic.twitter.com/WFfTtlten2
— Joe Consorti โก๏ธ (@JoeConsorti) February 3, 2025
