Bitcoin’s price has declined from over $100,000 in January to below $86,000 in February 2025, following former President Trump’s proposal of 25% tariffs on the EU.

The cryptocurrency, mirroring risk-on asset behavior, fell alongside equities as trade war concerns and inflationary fears unsettled markets.

Over $4 billion in crypto liquidations intensified the sell-off, reflecting heightened investor caution.

While Bitcoin’s historical resilience and Trump’s pro-crypto policies suggest this may be a temporary correction, prolonged trade tensions or economic weakening could signal a broader market shift.

The $85,000–$90,000 range now serves as a critical support zone. Market trajectory will hinge on the EU’s response and global economic repercussions, which will clarify whether this dip is fleeting or the start of a sustained downturn.

Ryan Lee, Chief Analyst at Bitget Research

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