Bitcoin price today: slips to $98.5k; faces resistance amid US-China tensions

Published 02/05/2025, 02:05 AM
Updated 02/05/2025, 10:16 AM
© Reuters

Investing.com-- Bitcoin extended declines on Wednesday, failing to sustain gains above the key $100,000 level, as escalating U.S.-China trade tensions kept investor sentiment cautious.

Bitcoin was around 1% weaker at $98,536.0 as of 08:47 ET (13:47 GMT). 

Bitcoin fails to hold gains as US-China trade tensions weigh

The cryptocurrency briefly surpassed the $100,000 mark in the past two days but failed to maintain those gains amid escalating U.S.-China trade tensions.

The recent trade friction began when the U.S. imposed a 10% tariff on Chinese imports, citing national security concerns. 

In response, China announced retaliatory tariffs on U.S. goods, including liquefied natural gas, coal, crude oil, and farm equipment. 

Additionally, Beijing initiated an antitrust investigation into Alphabet (NASDAQ:GOOGL) Inc.'s Google.

These developments have heightened investor caution, leading to increased market volatility. Gold prices, for instance, reached a record high as investors sought safe-haven assets amid the uncertainty.

Bitcoin's inability to sustain levels above $100,000 reflects the broader risk-off sentiment.

Trump administration moves to ease crypto regulations - NYT

The U.S. Securities and Exchange Commission (SEC) is downsizing its crypto enforcement unit, reassigning lawyers to other departments, as part of the Trump administration’s broader effort to reduce cryptocurrency regulations, the New York Times (NYSE:NYT) reported citing sources familiar with the matter.

The SEC's potential regulatory easing could have provided a bullish impetus for Bitcoin. However, the prevailing macroeconomic concerns, particularly the intensifying trade dispute between the world's two largest economies, overshadowed this development.

The impact of the crypto unit's downsizing on ongoing enforcement actions remains uncertain, the report stated.

Bitcoin could hit $500K before Trump leaves office: Standard Chartered (OTC:SCBFF)

Standard Chartered believes Bitcoin can hit $500,000 before US president Donald Trump leaves office, citing increased investor access and declining volatility as key drivers.

The bank noted that Bitcoin is establishing itself as a stable part of global investment portfolios, serving as a hedge against risks in traditional finance. The launch of U.S. spot Bitcoin ETFs in January 2024 unlocked pent-up demand, attracting $39 billion in inflows so far.

Standard Chartered expects further growth, supported by the Trump administration’s policies, including the repeal of SAB 121, which eased regulatory constraints on companies holding digital assets. Trump’s recent order to assess a potential national digital assets stockpile could also encourage central banks to consider Bitcoin investments.

Lower volatility is another factor expected to fuel Bitcoin’s rise. Standard Chartered anticipates price swings will stabilize as the ETF market matures and trading infrastructure improves through expanded options markets and more counterparties.

With these factors in play, the bank reaffirmed its price targets: $200,000 by the end of 2025, followed by $300,000 in 2026, $400,000 in 2027, and $500,000 in 2028.

"Access plus lower volatility could see Bitcoin reach the $500,000 level before Trump leaves office," the bank said.

Crypto price today: most altcoins range-bound tracking Bitcoin

Most altcoins were largely subdued, and moved in narrow ranges, reflecting increased caution towards speculative assets.

The world's no. 2 crypto Ether fell 0.8% to $2,808.80, while the no.3 crypto XRP fell over 3% to $2.542.

Solana was around 3% weaker, and Polygon was marginally up, while Cardano inched 1% higher.

Among meme tokens, Dogecoin lost 1.7%. 

Ayushman Ojha contributed to this report. 

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