FameEX Hot Topics | Bitcoin Price Rises Above $97K as Institutional and Retail Trader Demand Weakens

Bitcoin traders have shown a reluctance to make aggressive purchases recently, with their decisions primarily shaped by broader macroeconomic factors rather than just market sentiment. The lack of substantial price movements in the market underscores how external factors—particularly those related to global trade tensions and economic policies—are playing a key role in shaping trading behaviors at the moment. As a result, traders are adopting a more cautious approach amid mounting uncertainty.

On February 9, Bitcoin briefly dipped below $95,000, following reports that China was planning to impose tariffs on U.S. energy imports, including crude oil and liquefied natural gas. This news caused immediate market reactions, with Bitcoin seeing a notable dip as traders processed the potential ramifications of this development. The tariff announcement raised concerns about the potential escalation of trade tensions between the U.S. and China, the world's two largest economies. Investors began to worry that these trade disruptions could lead to a slowdown in global economic growth, which would likely affect a variety of markets, including cryptocurrency.

Despite the initial negative reaction, Bitcoin quickly regained its footing and managed to return to the $97,000 support level by February 10. This recovery came after U.S. President Donald Trump announced a 25% tariff on steel and aluminum imports from China, responding to the trade barriers imposed by Beijing. Although this move was part of a tit-for-tat trade policy, the market appeared to view it as a stabilizing factor, providing some relief to the cryptocurrency market. Nonetheless, Bitcoin’s recovery was somewhat muted, suggesting that many traders remain wary of the broader economic and geopolitical environment.

The institutional demand for Bitcoin has remained relatively stable in recent days, with few significant changes. Key market indicators such as spot exchange-traded fund (ETF) flows and Bitcoin derivatives metrics reflect this stability. While some investors are still drawn to Bitcoin’s long-term potential, the prevailing mood in the market is one of caution. As Bitcoin’s price remains volatile, many traders are choosing to stay on the sidelines, awaiting clearer signals regarding global economic conditions and how they might affect risk assets like Bitcoin.

Looking ahead, the interplay between global trade policies, economic growth concerns, and Bitcoin’s price movements will continue to be a defining factor in the cryptocurrency market. The lack of major bullish signals in the near-term reflects traders' focus on external risks, indicating that macroeconomic factors will likely remain a significant influence on Bitcoin trading decisions.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.