CandleFocus Bitcoin price signals potential rebound despite $393m liquidation
2025-02-03
Author: Content Editor
The price of Bitcoin experienced a significant crash, dropping to $91,170. This decline was attributed to potential stagflation risks in the United States caused by Donald Trump's announcement of tariffs on goods from the US, Canada, and China. These tariffs could lead to higher inflation and impact consumer spending, causing the Federal Reserve to keep interest rates higher for longer. As a result of the crash, liquidations on exchanges reached $400 million, the highest level in weeks. However, there are reasons to believe that Bitcoin's price may rebound. Historically, Bitcoin has performed well in February, and Trump's use of tariffs as a negotiation tactic could lead to a rebound in cryptocurrencies and stocks. The price of Bitcoin has been consolidating for months and has formed a bullish flag pattern, suggesting a potential breakout and a target of $109,200.
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