Trade War and Macro Shock Hit Bitcoin
The current Bitcoin decline stems from a political catalyst. Donald Trump’s announcement of 10% tariffs on European imports, with a threat to increase them to 25%, has reignited trade tensions between the United States and the European Union.
Historically, this type of conflict strengthens the US dollar (DXY). An inverse correlation persists with cryptocurrencies. When the dollar strengthens, Bitcoin and risk assets face increased selling pressure.
Faced with this geopolitical uncertainty, institutional investors are reducing their exposure. This capital rotation was enough to break several technical support levels, ending the recovery attempt observed at the start of the week.
BTC: Healthy Correction or Warning Signal?
From a technical perspective, BTC has been rejected below its key resistance levels and is sliding toward lower liquidity zones. If the current support gives way, a deeper retracement remains possible, testing the market’s strength.
Trading volumes will be decisive. A lack of buyer demand would confirm that whales are waiting for lower levels to reposition themselves, while the February 1st date maintains a climate of uncertainty.
At this stage, the decline remains compatible with a classic macro correction. However, as long as the political rhetoric and DXY trajectory do not stabilize, volatility should remain elevated. For investors, caution prevails: it is better to wait for a clear stabilization signal before attempting to buy the dip.
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