Bitcoin’s historically strong February faces pressure from trade war fears and economic uncertainty.
Bitcoin’s February Performance Faces New Risks
Historically, February has been a strong month for Bitcoin, averaging a 14% return since 2013. However, this year’s outlook is clouded by trade war concerns, with analysts warning that new tariffs could impact investor sentiment.
Tariffs Add Volatility to Crypto Markets
Trump’s recent executive orders imposing 25% tariffs on Mexico and Canada and a 10% duty on China raised concerns over inflation risks. Though the U.S. paused tariffs on Mexico and Canada, analysts warn that uncertainty could persist, keeping Bitcoin below $110,000.
Regulatory Shifts Under Trump Administration
Despite macroeconomic pressures, the U.S. crypto landscape has seen positive regulatory shifts. Former SEC Chair Gary Gensler has been replaced by crypto ally Mark Uyeda, and a new crypto task force aims to develop industry regulations. The repeal of the SEC’s SAB 121 rule and Trump’s executive order on crypto signal a friendlier stance toward digital assets.
Market Reactions and Future Outlook
While some industry leaders were disappointed that Trump’s executive order did not establish a Strategic Bitcoin Reserve, it provided regulatory clarity. Analysts expect its long-term effects to support market growth, though short-term pressures from tariffs and AI valuation concerns could weigh on Bitcoin.
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