5 things to know in Bitcoin this week

Bitcoin begins in February strongly as a wave of fear infects crypto and risk assets thanks to a new American trade war.

• BTC / USD approaches $ 90,000 while a sale of mass crypto sees “capitulation wicks” Altcoin and billions of dollars in liquidations.

• The American trade war has wreaked havoc on the stock market contracts on the stock markets when merchants are preparing for US President Donald Trump agrees will be a “little pain”.

• The impact of the trade war in terms of inflation of the federal reserve is already on the radar.

• Bitcoin holders (BTC) in the short term see a new test of their overall cost base.

• The feeling collapsed while “fear” goes to the crypto – the crypto fear & greed index is down more than 30 points in three days.

Altcoin “capitulation” stimulates the domination of bitcoin

A Sea of ​​Red welcomes Crypto merchants in early February – traditionally one of the most efficient months of Bitcoin.

Cointelegraph Markets Pro and TradingView data confirm up to $ 6,000 on BTC / USD from the weekly fence.

The pair has reached its lowest levels since January 13, returning to the bottom of a commercial range in place since November.

Before daily losses ride, Crowning trader predicted the disadvantage according to the liquidity of the order book and the desire of the market to fill the “wick” formed by the stockings of January.

“In terms of liquidations, we can say that liquidity is down. $ 94.7,000 is the main level of liquidation, so it is very possible that the price is pushing the whole way there, “he wrote in a wire on X.

“Then, once we got there, the wick at $ 91,000 can act as a magnet. Be careful to try to catch a falling knife.

The latest monitoring data from Resource Coinglass put Crypto liquidations 24/24 at 2.23 billion giant dollars.

“Wild times in this range,” continued his Roman colleague.

“I will not lie, I did not expect to review the 90s lower, but we are there. Bull Divs, Stoch reset and seated in a low -range support area. Would make sense to see us bounce back soon. »»

Roman has joined those who express hopes that Bitcoin could find its foot and bounce without violating the range.

“I cannot emphasize enough how optimistic for $ BTC in this context,” wrote Trader Credible Crypto in an update for X subscribers after BTC / USD has stopped its slowdown in familiar support.

“Loving strength on the king right now. Will continue to monitor this and seek signs from the start of the following pulse. »»

Looking at Altcoins, Trader and Analyst Skew identified “capitulation wicks”, because many tokens collapsed by 20% or more.

The coming week, he plans, will be “very interesting”.

The share of Bitcoin of the total market capitalization of cryptography increased briefly to 64.3 on February 3, marking its highest level in almost four years.

The anxiety of the trade war floods crypto, stocks

There is a subject on the spirit of the participant in the cryptography market this week: the Snap trade war between the United States and its neighbors, as well as China and perhaps later the EU.

President Donald Trump followed his wish to impose 25% of prices in Canada and Mexico, a decision which, according to him, would ultimately be interesting.

“We can have a short pain in the short term, and people understand it. But in the long term, the United States has been scammed by practically all countries of the world, “he told journalists on February 2, quoted by Reuters and others.

Assets at risk were apparently not prepared for such a possibility. Actions immediately felt the pain, with a long -term dive – the S&P 500 lost 1 billion of dollars of value after the opening of the term contracts.

By reacting, the letter from Kobeissi noted that the markets had abandoned the rebound of aid which followed another drop a week ago, this coming to come from a threat of the Chinese depth.

“1 week ago, the markets collapsed on deep fears on Sunday evening. The Down gap was largely adhered to open on Monday, “he wrote in part of current X analysis.

“Today, the markets are negotiating on these stockings. Is the gap this time held?

In a dark signal for merchants, cryptographic markets fell much stronger, many major altcoins giving off 20% or more over 24 hours.

Bitcoin managed to stem his losses, returning to the bottom of his trading range several times nearly $ 90,000.

“Ethereum fell by -37% in 60 hours since the trade war has made the headlines in noon on Friday,” noted Kobeissi, describing the drop in “crazy”.

The market capitalization of combined cryptography has also dropped up to 21% over three days, or 760 billion dollars.

Only the US dollar has benefited from the rout, with the US dollar index (DXY) to almost 110, its highest level since January 13.

Beyond that, Barchart noted financial and commercial resources, is an area not seen since November 2022 – The pit of the crypto bear market.

Macro fallout extend to Fed

The booming trade war is upsetting what was to be a relatively silent week for American macroeconomic data.

Various manufacturing impressions combine with the number of jobs as the main sources of potential volatility of risky networks. The week will also see 20% of S&P 500 companies will publish profits.

In addition to this, various officials of the Federal Reserve will highlight, highlighting the future policy of interest rates.

“This week is a question of profit and the labor market,” summed up the letter of trading that Kobeissi’s letter.

The ratings of the Fed market return to a more dominant position at its next meeting in March remain low. The latest estimates of the Fedwatch tool in the CME group show that the chances of a minimum rate drop of 0.25% to just 15%.

Taking a longer -term view, Arthur Hayes, former CEO of Crypto Exchange Bitmex, warned that the prospects can get worse before improving. The point of pivot, he said, would be the United States which unleashes liquidity by quantitative relaxation.

“The blows will continue until morality improves,” he predicted on X.

“The pain stops when a tradfi outfit is on the verge of bankruptcy. Then the Fed reluctantly joins the Trump team and prints money. And then you’d better be ready to buy crypto as you have never bought before.

Last week, the president of the FED, Jerome Powell, already under pressure from the Trump administration to reduce rates, said it could be done without delay that inflation is returning to the target target of the Fed .

Grilled bitcoin speculators in the key support test

In the middle of panic, market players envisage where bitcoin can put a local background.

It is particularly interesting, like never when inversions of the bull market, the base of the aggregate costs of Bitcoin speculators.

Known as short -term holders (STHS), these entities have copied a given BTC unit up to 155 days and are more sensitive to short -term volatility.

Their cost base works frequently as a support on the bull markets and resistance on the lower markets – and currently, the phenomenon is clearly visible.

The data from the ONCHAIN ​​Analytics Glassnode platform put the base of the average cost, also known as the price made, for the STH cohort at just under $ 92,000 to February 2, the last date for which data were available at the time of writing.

“The Bitcoin short -term cost model (STH) is crucial to measure the feeling among new investors,” Glassnode said in an X thread last month.

Glassnode warned that if BTC Price should return the STH cost base to resistance, this could:

“Signs the decreasing feeling among new investors – which is often a turning point in market trends.”

Crypto feeling nosedives

The feeling of the cryptography market is predictable low in an atmosphere of uncertainty through risk assets.

In relation: Bitcoin seals first $ 100,000 + monthly fence with btc price due “big move‘

This is reflected in the Fear & Greed index for cryptographic and traditional markets, with the old diving 32 points in three days. In doing so, the index has reached its lowest level since October.

“Important declines in feeling and positioning at all levels,” wrote Andre Dragosch, European research manager in the asset management company, wrote in an answer X.

“Good time to start adding an exhibition in Bitcoin Imo.”

The stock market equivalent of the Fear & Greed index remained two points higher than the crypto at the time of the editorial staff at 46/100, which has already been characterized as a global mood of “fear” before the opening of Wall Street.

Jesse Cohen, global market analyst at Investing.com, noted the speed with which the atmosphere can change.

“Remember that people, the feeling of the market can light a penny-a Tweet Trump is all that needs,” he told X subscribers.

This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.