HomeCryptoBitcoinThe price of Bitcoin is down today, but not by much

The price of Bitcoin is down today, but not by much

Today the price of Bitcoin has broadly fallen back below $100,000. 

In reality, today’s is just the most recent drop of a decline that started a few days ago, and that has intensified today. 

The recent trend of the price of Bitcoin

On Friday, January 31, the price of Bitcoin was around $104,000. However, on the same Friday, the recent bear phase began, with a drop to $101,000 that lasted until the following day. 

Yesterday, Sunday, February 2nd, the decline resumed, with a drop to below $98,000. 

Last night, however, the price of BTC fell for a brief moment even below $92,000, but then bounced back almost immediately and returned within a few hours above $95,000.

Taking as a reference the $104,000 of Friday, the maximum drop so far has been 12%, then reduced to the current -8.7%.

It may seem like a significant drop, given that it occurred over an extended weekend, but in reality, these drops are quite common in the crypto markets

The causes of the Bitcoin price drop

Everything started on Friday when news began to spread about imminent trade tariffs imposed by Donald Trump on some countries trading with the USA, particularly Mexico, Canada, and China. Trump also threatened tariffs against European countries. 

The tariffs inevitably end up increasing the price of important goods, and this should cause inflation to rise. 

Inflation in the USA is still well above the 2% target, so much so that the Fed in January suspended the interest rate cut program. With the tariffs, there is a risk that the Fed may be forced to suspend the rate cut for many months, so much so that in theory it might even end up being forced sooner or later to raise them again, due to the possible rise in inflation. 

All this is really disliked by the financial markets because it implies a possible reduction in liquidity, or in any case an end to the period of increasing liquidity, albeit temporary. 

All financial markets reacted poorly, and the crypto ones were no exception. 

The dollar

Regarding the price of Bitcoin, it is advisable to analyze the trend of the Dollar Index. 

The fact is that, faced with the fear that in the short term the situation may remain difficult in the markets, many speculators and investors sell assets to buy dollars, so as to be ready to use those dollars to potentially repurchase assets at lower prices later. This increases the buying pressure on the dollar, and therefore its price in relation to that of other currencies. 

The Dollar Index measures the strength of the US dollar compared to a basket of other major currencies globally. 

On Friday, the value of this index was about 108.5 points, already increasing compared to the 108 points of the previous day. 

Saturday and Sunday the traditional stock exchanges remained closed for the weekend, and therefore the Dollar Index could not move. Today at the reopening it suddenly jumped even to 109.8 points, and then went down a little to 109.5. 

This dynamic caused the price of Bitcoin to start factoring in an increase in the Dollar Index over the weekend, dropping a bit, and then dropping more significantly at the reopening of traditional stock markets. The price of BTC, in fact, tends to be inversely correlated to the dollar in the medium/long term. 

The altcoin

If Bitcoin is losing 4% compared to yesterday, 3% compared to a week ago, and 2% compared to a month ago, for many altcoins the situation is much worse. 

Ethereum, for example, today loses even 16% compared to yesterday, and the loss rises to -27% compared to a month ago. 

XRP loses 16% compared to yesterday, although compared to a month ago it remains at -1%. 

For Solana, things are going a little better, but for Cardano, for example, the drop is 20% compared to yesterday and 33% compared to a month ago. 

In fact, Bitcoin’s dominance during the night rose above 62%, while now it is at 61.5%. It is worth noting that on Friday it was below 59%, and at the beginning of the year it had even fallen below 57%. These may seem like minor movements, but for Bitcoin’s dominance, they are definitely significant. 

On the other hand, when things go wrong in the crypto markets, altcoins tend to suffer more than Bitcoin, which instead has a slightly less volatile trend. 

The future of the Bitcoin price

It must be said that the current phase of suffering does not seem at all to be due to a suffering of Bitcoin. 

On one hand, it is due to the extraordinary (and perhaps excessive) strength of the US dollar, and on the other hand, to the difficulty of altcoins. 

The problem is that as of today there are no signs of a possible trend reversal of the Dollar Index in the short term, even if the markets seem to consider a medium-term decline possible. 

Moreover, the drop in the price of Bitcoin last night did not even reach the bottom of 2025, namely the $89,000 touched on Monday, January 13. 

The current approximately $95,000 of the BTC price are perfectly in line with the values of the end of November, and for now do not scare the long-term holders. However, it remains to be seen where the Dollar Index wants to go, which many expect to fall and instead manages to remain very high despite everything. 

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".
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