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Crypto Writer
Arslan Butt
Crypto Writer
Arslan Butt
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Bitcoin briefly dropped under $100,000, stabilizing near $98,000 as markets react to new U.S.-China trade tensions. The U.S. government’s latest tariff hikes on Chinese imports have fueled investor concerns, triggering volatility in global markets, including crypto.
Despite short-term uncertainty, institutional investors remain bullish. Strategy (formerly MicroStrategy) just announced a major Bitcoin acquisition, reinforcing long-term confidence in BTC’s value.
Michael Saylor, Strategy’s CEO, confirmed the purchase of 7,633 BTC for $742 million, at an average price of $97,255 per coin. This latest buy brings the company’s total holdings to 478,740 BTC, averaging $65,033 per Bitcoin.
The move signals strong institutional belief in BTC’s future upside, with Strategy’s 2024 Bitcoin investment already yielding a 4.1% return.
Bitcoin Exchange Supply Drops as Institutional Demand Rises
While Bitcoin’s price remains volatile, its supply on exchanges continues to decline, reducing potential selling pressure. According to CryptoQuant, over 47,000 BTC ($4.6 billion) left crypto exchanges on February 5, marking the largest single-day outflow since the FTX collapse in 2022.
Historically, large BTC outflows have signaled strong accumulation phases, often preceding major rallies. Similar events in July 2024 and November 2022 led to 125% and 100% price surges, respectively. This trend suggests that institutional investors and long-term holders are moving Bitcoin to private wallets, anticipating another breakout.
If large-scale accumulation persists, Bitcoin could gain further momentum, pushing toward new highs in the coming months.
Macroeconomic Trends and the Fed’s Role in Bitcoin’s Future
Beyond institutional demand, macroeconomic factors are influencing Bitcoin’s trajectory. The University of Michigan’s consumer sentiment report revealed that Americans expect inflation to rise by 3.3% annually, the highest since 2008.
At the same time, rising tariffs under a potential Trump administration are fueling inflation fears, potentially delaying Federal Reserve rate cuts. Higher borrowing costs generally reduce Bitcoin’s appeal compared to traditional assets like bonds. However, lower interest rates could increase liquidity, boosting demand for BTC.
Investors are closely watching Fed Chair Jerome Powell’s upcoming speech for signals on monetary policy shifts. Historically, Bitcoin has performed well during Fed rate pauses, as seen in 2024. Speculation that a pro-crypto Trump administration may consider a Bitcoin reserve strategy could further elevate its status as a safe-haven asset, supporting long-term growth.
Bitcoin Breaks Out: Can BTC Hold Above $98,850 for More Gains?
Bitcoin (BTC/USD) is trading at $98,399, attempting a breakout from a symmetrical triangle pattern. If BTC holds above $98,892, it could rally toward $100,594, a key resistance level aligned with the Fibonacci 0.618 retracement.
The 50-EMA at $97,277 is providing support, keeping the bullish momentum intact. A drop below $97,183 could lead to further losses, with $95,089 as the next major support.
Traders should watch for buying volume—a strong push above resistance could confirm the breakout, while weak momentum may keep BTC range-bound.
Technical Outlook:
- BTC must stay above $98,892 to sustain bullish momentum.
- The 50-EMA at $97,277 acts as immediate support.
- A break below $97,183 could send BTC toward $95,089.
Bitcoin’s short-term trend hinges on breaking resistance, with a potential move toward $100,500 if buying pressure increases.
Best Wallet Token ($BEST): A Smarter Way to Manage Crypto
Best Wallet Token ($BEST) is more than just a presale—it’s the backbone of Best Wallet, an advanced digital asset manager available on Google Play and the App Store. Designed for both everyday users and professional traders, Best Wallet provides an intuitive platform for storing, managing, and investing in crypto, featuring early-access token discovery and seamless staking integration.
Why Best Wallet Stands Out
- Upcoming Tokens Feature: Discover and invest in promising crypto projects before they hit mainstream markets.
- Enhanced Security: Fireblocks’ MPC-CMP security framework ensures secure transactions and portfolio management.
- Massive Asset Support: Supports over 1,000 cryptocurrencies, providing a streamlined user experience.
- New Update (v2.4.5): Users can now claim tokens directly within the app, eliminating the need for third-party platforms.
Why Investors Are Bullish on $BEST
- 177% APY in staking rewards, making it one of the most rewarding crypto investments.
- Over 150.4 million $BEST tokens staked, reflecting strong investor confidence.
- $9.5 million raised so far, with demand surging as the next price increase nears.
- Current price: $0.02395, with a scheduled increase soon, offering early investors a prime entry point.
With its cutting-edge technology and robust staking rewards, $BEST is positioned as a top-tier utility token in the crypto space.
