Bitcoin Resilience Amidst Economic Challenges
Despite Bitcoin (BTC) facing a temporary setback due to President Donald Trump’s remarks on tariffs, it remains structurally strong, as reported in the latest edition of the “Bitfinex Alpha” report.
Bitcoin Price Movement
- Bitcoin surged over 10% in January, reaching an all-time high of $109,590 on Jan. 20.
- The rally was short-lived, with Bitcoin closing January at $102,470 before entering a downward trend in early February.
- Bitcoin has been trading within a 15% range since mid-November, with two peaks near $108,000.
Market Trends
- Bitcoin’s price movements have mirrored US equity markets’ reactions to macroeconomic developments.
- The S&P 500 index formed a double-top pattern around Trump’s inauguration and recent tariff announcements.
- US tariff increases have impacted both traditional markets and Bitcoin, with the latter experiencing sharper declines.
Economic Implications
Bitfinex analysts predict that tariff increases could have various effects on the economy:
- Reduce S&P 500 earnings by 2.8%
- Raise core inflation by 0.7%
- Lower US GDP by 0.4%
Despite its sensitivity to macroeconomic factors, Bitcoin has shown resilience in higher timeframes, maintaining structural support levels even amidst broader market corrections.
Market Performance
- Bitcoin gained 9.4% in January, outperforming traditional equity markets.
- Following the November 2024 elections, Bitcoin and equities diverged, with Bitcoin maintaining strength above key historical resistance levels.
Despite recent pullbacks, Bitcoin continues to demonstrate strong adoption and macro positioning, indicating long-term viability amid short-term volatility.
Bitcoin Market Data
As of the latest data, Bitcoin is ranked #1 by market cap, with a market capitalization of $2.02 trillion and a 24-hour trading volume of $118.62 billion. The price of Bitcoin has seen a 3.91% increase over the past 24 hours.
Crypto Market Summary
The total crypto market is currently valued at $3.36 trillion, with a 24-hour trading volume of $372.09 billion. Bitcoin dominance stands at 60.09%.