FameEX Hot Topics | Bitcoin Price Surges Above $97K as Demand from Institutional and Retail Traders Declines

Bitcoin traders have been hesitant to aggressively purchase the cryptocurrency recently, with many concerns tied to broader macroeconomic conditions rather than market sentiment alone. The lack of major price action highlights how external factors, particularly related to global trade and economic policies, are influencing trading strategies at the moment.

On February 9, Bitcoin experienced a brief dip below $95,000 after news broke that China was planning to impose tariffs on U.S. energy imports, including crude oil and liquefied natural gas. The announcement sparked immediate concern across global markets, with Bitcoin being no exception. The tariff decision raised questions about the potential impact on trade relations between the world’s two largest economies and contributed to heightened market uncertainty.

Despite the initial drop, Bitcoin managed to rebound swiftly and regained its $97,000 support level by February 10. This recovery came after U.S. President Donald Trump responded with his own tariff measures, imposing a 25% tariff on steel and aluminum imports from China. The move seemed to calm markets temporarily, as Bitcoin found renewed support amid the ongoing back-and-forth between the U.S. and China on trade.

Despite this bounce back in price, institutional demand for Bitcoin has not shown any significant changes recently. Key metrics such as spot exchange-traded fund (ETF) flows and BTC derivatives data remain largely stagnant, suggesting that institutional investors are waiting for more clarity on broader economic issues before committing further capital. This hesitance reflects a more cautious approach from institutional players, who often look for stable economic conditions before making large investments in volatile assets like Bitcoin.

The ongoing macroeconomic concerns, including trade tensions and uncertainty over global economic recovery, are creating a more subdued atmosphere for Bitcoin trading. While retail investors continue to engage with the market, larger institutional investors seem less inclined to act without clearer signals on the broader economic landscape. This ongoing caution could result in periods of stagnation or slower growth for Bitcoin until clearer economic signals emerge.

Ultimately, the cryptocurrency market remains influenced by these larger economic forces, as global trade policies and fiscal decisions weigh heavily on investor sentiment. Bitcoin’s price stability, while notable, is subject to shifts depending on how the global economic situation unfolds in the coming weeks and months.

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