bitcoin
Bitcoin (BITCOIN)
$97,411 1.69%
ethereum
Ethereum (ETHEREUM)
$2,738 3.70%
binancecoin
BNB (BINANCECOIN)
$669.58 0.58%
solana
Solana (SOLANA)
$202.28 5.28%
ripple
XRP (RIPPLE)
$2.73 11.92%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000017 4.27%
pepe
Pepe (PEPE)
$0.000010 8.49%
bonk
Bonk (BONK)
$0.000019 9.33%
bitcoin
Bitcoin (BITCOIN)
$97,411 1.69%
ethereum
Ethereum (ETHEREUM)
$2,738 3.70%
binancecoin
BNB (BINANCECOIN)
$669.58 0.58%
solana
Solana (SOLANA)
$202.28 5.28%
ripple
XRP (RIPPLE)
$2.73 11.92%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000017 4.27%
pepe
Pepe (PEPE)
$0.000010 8.49%
bonk
Bonk (BONK)
$0.000019 9.33%
bitcoin
Bitcoin (BITCOIN)
$97,411 1.69%
ethereum
Ethereum (ETHEREUM)
$2,738 3.70%
binancecoin
BNB (BINANCECOIN)
$669.58 0.58%
solana
Solana (SOLANA)
$202.28 5.28%
ripple
XRP (RIPPLE)
$2.73 11.92%
shiba-inu
Shiba Inu (SHIBA-INU)
$0.000017 4.27%
pepe
Pepe (PEPE)
$0.000010 8.49%
bonk
Bonk (BONK)
$0.000019 9.33%
Disclosure
Cryptocurrency trading is speculative and your capital is at risk when you trade. We may earn affiliate commissions from some of the products on this page - at no extra cost to you.
Bitcoin Price Prediction – Why BTC Could Drop to $93k Short Term

Highlights:

  • Bitcoin bulls have lost momentum after failing at $102,513 resistance
  • Bitcoin weakness was driven by uncertainties around a Bitcoin reserve in the US
  • Overall, more straightforward regulations could uplift Bitcoin in the medium term

After dipping below the $100,000 mark on Tuesday, Bitcoin continues to show weakness in Wednesday trading. As of this report, Bitcoin is hovering around $97,665. The drop of 0.66% can be attributed to the geopolitical and trade uncertainty in the world. However, one primary reason weighing on the market’s sentiment is the Trump administration’s silence regarding reserving their Bitcoin strategy.

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Bitcoin Price Shows Weakness as Trump’s Crypto Czar Remains Tight-Lipped

David Sacks, the White House cryptocurrency director and Trump’s “crypto czar,” held a press conference yesterday. In it, he details the administration’s strategy for digital assets. While Sacks talked about plans to make the U.S. the most significant player in the cryptocurrency world, he failed to explain if the government plans to hoard Bitcoin. He only said the administration is still looking into the possibility of such a reserve, leaving investors and market analysts in the dark.

Not taking a clear position on Bitcoin reserves has put many traders on ice. Numerous people were hoping for a more drastic shift to government-sponsored Bitcoin policies that would have assisted in market trust. As no arrangements exist, ambiguity still dampens the cryptocurrency’s performance.

The Fallout of El Salvador’s Bitcoin Experiment Dampens Mood Further

While the U.S. is trying to figure out its cryptocurrency strategy, El Salvador faces challenges using Bitcoin as a legal tender because of pressure from global financial institutions. President Nayib Bukuke’s experiment with Bitcoin, highly regarded as an innovative stride towards economic self-sufficiency, has had to step back due to the influence of the International Monetary Fund (IMF).

To obtain a $1.4 billion credit line, Bukele’s administration has scaled back on Bitcoin purchases. The government has also eliminated the statutory prerequisites for businesses to accept Bitcoin as payment. Alongside other recommendations, the IMF has also requested that public sector uses of Bitcoin be restricted to further digitized currencies, showing the disapproval of global banking of Bitcoin.

Nevertheless, El Salvador has not stopped adding to its Bitcoin reserve, having recently purchased 12 BTC. However, the country’s overall strategy regarding Bitcoin adoption has been significantly limited.

SEC Expands Its Crypto Oversight a Ray of Light for Bitcoin

That said, investors are optimistic about news coming from the SEC. Yesterday, February 4, the U.S. Securities and Exchange Commission (SEC) activated a new website for a newly formed Crypto Task Force. This initiative was outlined in the commission by Hester Peirce, famous in cryptocurrency circles as “Crypto Mom.”

Her objective is to consolidate regulation and assess the possibility of having a national cryptocurrency reserve. Peirce has consistently supported moderation between regulation and innovation. Still, the SEC’s greater participation indicates growing attention toward digital assets.

New Stablecoin Bill Hits Congress Could Boost Bitcoin

From the legislative side, Tennessee Senator Bill Hagerty submitted a new bill regulating stablecoins. The proposal seeks to set forth rules for creating digital tokens pegged to the US dollar as part of a broader effort to clarify the sector.

As with other members of the Senate Banking Committee, Tim Scott, the Chairman, and Cynthia Lummis, the head of the Digital Assets Subcommittee, also support the bill. It may capture a pivotal moment toward adopting and regulating stablecoins in the United States. It could also boost Bitcoin adoption in the US, indicating acceptance at the macro level.

Technical Analysis – Bitcoin Price Action Reflects Ongoing Uncertainty

From the charts, Bitcoin is trending lower after bulls lost control at the $102,513 resistance on February 4. If the bearish sentiment continues, Bitcoin could drop back to the $93,373 support in the short term.

BTC Chart
Source: TradingView

While a rebound can invalidate such a move, the ongoing uncertainty in the market makes more downside in the short term more plausible.

Recap

The cryptocurrency market is yet again in uncertain territory. Investors remain cautious mainly because the Trump administration’s Bitcoin strategy is missing, and the regulations are unclear, to say the least. Until the U.S. government comes out with clear policies regarding digital Assets, Bitcoin’s price fluctuations will continue to be volatile.

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