Bitcoin highlighted its growing sensitivity to macroeconomic developments, reaching a local bottom just above $91,000. On February 3, at 02:00 UTC, Bitcoin dropped to $91,530, marking its lowest level in over three weeks, before recovering to $95,306 by 08:15 UTC.

BTC/USD, 1-Day Chart

Bitcoin’s decline came after U.S. President Donald Trump signed an executive order on February 1 to impose additional tariffs on imports from China, Canada, and Mexico.

Ryan Lee, Head Analyst at Bitget Research, noted that Trump’s tariffs escalated global trade war concerns, shaking investor confidence and exerting downward pressure on Bitcoin.

Lee explained that while Bitcoin has traditionally been seen as a hedge against traditional market volatility, recent price movements highlight its increasing sensitivity to global economic developments. According to him, geopolitical tensions and government policies are now playing a more decisive role in shaping the cryptocurrency market.

The analyst added that Canada, Mexico, and China’s retaliatory measures further heightened investor concerns, triggering a flight from risky assets, including cryptocurrencies.

Bitcoin’s price movement aligns with previous predictions from analysts, who forecast a deeper correction following a “local peak” above $110,000 in January.

GMI Total Liquidity Index, Bitcoin (RHS)

Bitcoin Continues to Be Sensitive to Macroeconomic Developments

Raoul Pal, Founder and CEO of Global Macro Investor, highlighted Bitcoin’s correlation with the global liquidity index, suggesting that Bitcoin could fall below $70,000 in February before a temporary peak in liquidity.

Despite being viewed as a hedge against volatility in traditional finance markets, Bitcoin remains sensitive to macroeconomic developments.

However, Alvin Kan, COO of Bitget Wallet, believes that Bitcoin has recovery potential compared to traditional markets. He stated, “While the sell-off reflects a typical risk-off reaction to macroeconomic shocks, Bitcoin’s safe-haven perception still leaves room for a rebound, particularly as digital assets are increasingly adopted as hedges against inflation and currency devaluation.”

Short-term concerns related to the $36 trillion U.S. debt ceiling persist, but industry experts remain optimistic about Bitcoin’s outlook for the rest of the year. Analysts predict Bitcoin could rise above $160,000 to $180,000 during the remainder of the 2025 market cycle.

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