Bitcoin Price Declines as Trade Tensions Escalate Between US and China
Bitcoin and other cryptocurrencies are under renewed selling pressure due to escalating US-China trade tensions. Bitcoin dropped to $91,000, while Ethereum and Solana also faced declines.
CME Bitcoin Futures Open Interest Drops 4%
- The US imposed a 10% tariff on Chinese goods, prompting China to retaliate with tariffs on US imports starting February 10.
- China initiated an inquiry into Google for alleged antitrust violations, exacerbating economic tensions.
- A short rally following the postponement of tariffs on Mexico and Canada has been negated by the latest developments.
- Investors withdrew $235 million from 12 Bitcoin-centric ETFs on Monday.
- Open interest in Bitcoin futures on CME decreased by 4%, indicating cautious institutional investor sentiment.
Despite President Trump's previous support for crypto, recent actions have increased market uncertainty amid geopolitical strife. Bitcoin is currently trading at $98,970, about 13% below its all-time high. Ethereum ETFs experienced record trading volumes, with ETH dropping up to 27% and over $600 million liquidated in perpetual futures markets.
- Critical support for Bitcoin identified at $92,180; failure could lead to a target of $74,400.
- Traders currently have a profit margin of 3.36%. Historical analysis suggests further downside potential if margins drop below -12%.
- MVRV Momentum indicator remains negative, indicating ongoing market weakness.
