Bitcoin bounced again on Monday, February 3, rising above $100,000 as soon as once more after falling to just about $90,000 over the weekend.
The world’s Most worthy digital forex reached roughly $102,600 shut to five p.m. EST, in response to Coinbase information from TradingView.
At this level, the cryptocurrency was up greater than 10% from the latest low of near $91,000 it attained on Sunday, February 2, extra Coinbase figures from TradingView present.
When explaining the digital asset’s newest worth actions, analysts cited a number of elements, together with the latest tariff bulletins, supply-demand dynamics and in addition the influence of speculative bets being liquidated.
One market observer who weighed in on these developments is the the TikTok influencer who goes by Wendy O.
“Over the weekend President Trump introduced tariffs on Mexico, Canada and China,” she famous through electronic mail. “Since this was introduced on 2/1/2025, Saturday, this triggered a number of concern for crypto merchants on how this might influence conventional markets.”
“Many, together with Blackrock have indicated that Bitcoin is a perfect asset throughout risky occasions of financial uncertainty, much like Gold,” she emphasised.
The analyst additionally emphasised sharp adjustments in leveraged positions, citing information supplied by crypto analytics platform CoinGlass.
“In accordance with CoinGlass most merchants took an extended place and out of the historic $2.2B liquidations, ~$1.5B longs have been liquidated whereas gold hit an all-time excessive,” Wendy famous.
“This means Bitcoin merchants, could have anticipated that Bitcoin would proceed with bullish worth motion as unsure financial circumstances might have occurred Monday as a consequence of Trumps tariffs (much like gold).”
“Nevertheless, the 25% tariffs positioned on Mexican imports has been paused for the subsequent 30 days which might point out much less volatility,” she acknowledged, emphasizing right this moment’s announcement that President Donald Trump was suspending tariffs on Mexico till early subsequent month.
Markets additionally came upon right this moment that Trump deliberate to pause the Canadian tariffs he introduced over the weekend after talking with Prime Minister Justin Trudeau.
‘No Shock’
Sure analysts who supplied enter for this text made right this moment’s improve in bitcoin costs appear predictable given present market circumstances.
“Bitcoin’s restoration to $100K and above is not any shock—it’s easy provide and demand,” Cory Klippsten, CEO of Swan Bitcoin, mentioned through emailed feedback.
“Establishments, sovereign wealth funds, and on a regular basis persons are realizing fiat’s inevitable decline and shifting into one of the best cash ever invented,” he added.
“Weak fingers bought within the latest dip, however robust holders stepped in, stacking tougher,” Klippsten acknowledged. “In the meantime, international uncertainty is driving extra individuals to decide out of failing fiat. That is just the start.”
Tim Enneking, managing associate of Psalion, additionally weighed in.
“In the present day’s rebound was merely a restoration from the absurd drop yesterday,” he acknowledged via electronic mail.
“Most often, the correlation with sure fiat markets works towards Bitcoin; yesterday, had US equities markets been open, it could have labored very a lot in favor of BTC,” Enneking emphasised.
“The drop on Sunday hit ridiculous proportions as a result of there was nothing to sluggish it down and concern completely dominated greed; the drop solely slowed as soon as Asia markets had opened and had completely reversed a number of hours after US markets had finished the identical,” he acknowledged.
“So, billions of lengthy positions worn out and one other information level created for people who’re contemplating investing within the crypto ecosystem,” Enneking concluded.
‘Provide Squeeze’
Alex Lin, cofounder and common associate at enterprise capital agency Reforge, additionally weighed in, highlighting the robust curiosity of cryptocurrency patrons.
“BTC’s rebound above $100,000 after its weekend lows factors to a major provide squeeze,” he wrote via emailed feedback.
“Over the previous few days, retail buyers capitulated as a consequence of fears sparked by Trump’s commerce struggle headlines. Nevertheless, giant gamers and establishments took benefit of the dip to build up, as proven by the Coinbase Bitcoin Premium Index, which indicated robust purchaser demand with a noticeable premium,” Lin acknowledged.
“This exercise underscores BTC’s resilience and suggests potential bullish momentum, particularly as confidence within the broader market outlook stays robust,” he added.
Disclosure: I personal some bitcoin, bitcoin money, litecoin, ether, EOS and SOL.
