Bitcoin’s Wild Ride: Will It Plunge Below $90K? Find Out Now! 🚀💰

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Oh, dearie me! It seems our beloved Bitcoin is in a bit of a pickle! With the looming threat of a global trade war, thanks to some rather cheeky import tariffs from the US and China, the crypto world is holding its breath. 😱

Just when you thought it was safe to go back in the water, the Ministry of Finance in China decided to sprinkle some salt on the wounds with new tariffs of up to 15% on certain US imports, effective Feb. 10. Talk about a spicy meatball! 🍝

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Despite a valiant effort to bounce back from $96,200, Bitcoin is now teetering on the edge, with whispers of a correction below $90,000 echoing through the crypto halls. It’s like watching a tightrope walker without a safety net! 🎪

Ryan Lee, the chief analyst at Bitget Research, has a few words of wisdom: “China’s tariff decision could introduce a rollercoaster of volatility for risk assets like Bitcoin.” Buckle up, folks! 🎢

He continues, “Escalating tensions may send traditional markets into a tizzy, making investors flock to Bitcoin as a shiny hedge against inflation. But beware! A market sell-off could send Bitcoin tumbling below $90,000 faster than you can say ‘cryptocurrency’!”

Bitcoin’s Short-Term Correction: A Comedy of Errors!

Historically, when big economies start throwing tariffs around like confetti, it often leads to “significant market drawdowns,” according to James Wo, the founder and CEO of DFG. It’s like a party where everyone leaves before the cake is served! 🎂

“This might see a potential short-term risk of a wider correction sub $90,000 for Bitcoin and in the broader market including equities and commodities.”

But wait, there’s more! Wo adds, “A sustained trade war could lead to dollar debasement and inflation, making Bitcoin the belle of the ball!” 💃

Meanwhile, Bitcoin needs to keep its head above water, staying above $97,000 to avoid a downward spiral. It’s like trying to keep a beach ball afloat in a kiddie pool! 🏖️

If Bitcoin dips below $97,000, we could see over $1.3 billion worth of leveraged long liquidations across all exchanges. Yikes! That’s a lot of zeros! 💸

As the tariffs strengthen the US dollar, Bitcoin and other risk assets might feel the pinch. Lee warns, “The key factor will be monetary policy. If the Fed decides to lower interest rates, we might just see Bitcoin soar like a rocket!” 🚀

And let’s not forget the inflation concerns and supply chain issues that higher tariffs might stir up. Investors could start eyeing Bitcoin as their trusty shield against traditional market chaos. 🛡️

Now, everyone is eagerly awaiting Trump’s tête-à-tête with Chinese President Xi Jinping, hoping for a resolution to this trade tiff. Will they shake hands and make up, or will it be a full-blown trade war? Only time will tell! ⏳

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2025-02-04 16:48