US China tariffs cost Bitcoin $100K mark as analyst eyes all-time high

Bitcoin (BTC) returned below $100,000 on Feb. 4 as fresh trade war fears punctured a snap rebound.

BTC price comeback sours on fresh tariff woes

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reversing around 3% after the daily open.

Markets had surged on news that US tariffs on Mexico and Canada would be delayed by a month, along with President Donald Trump signing an executive order to create a first-of-its-kind sovereign wealth fund.

White House cryptocurrency director David Sacks will hold a press conference at 2.30 pm Eastern Time to reveal details of the US digital asset policy.

“The Trump administration plans to reposition America as the leader in digital assets,” popular trader Jelle responded in part of an X post on the topic, preparing for a “big day.”

After bouncing near $91,500, BTC/USD gained over $10,000 in a single daily candle.

Progress was halted, however, when it emerged that China was retaliating against US tariffs with its own measures targeting oil, coal and more.

“Going to be a volatile day again,” Jelle added.

Crypto trader, analyst and entrepreneur Michaël van de Poppe agreed that volatility would likely continue.

“Bitcoin bounced back swiftly and is currently acting within the range,” he summarized alongside the daily chart. 

“I assume we’ll see new ATHs in February and it’s quite normal to correct after such a strong bounce. Volatility through the roof, but, as long as Bitcoin remains above $93K, a new ATH is likely.”

Others, such as popular trader Phoenix, suggested that BTC/USD would investigate a new short-term range as a result of the volatility.

“After such an event, it feels logical for me to expect some sort of a new range to form,” he argued on the day.

Funding rates add to rare Bitcoin bull cues

Meanwhile, funding rates across derivatives markets gave Axel Adler Jr., a contributor to onchain analytics platform CryptoQuant, cause for celebration.

Related: BTC dominance nears 4-year high: 5 things to know in Bitcoin this week

Funding rates, Adler noted, had printed a key bull signal during Bitcoin’s trip toward $90,000.

“For the seventh time this year, the Bitcoin Funding Rate has turned negative,” he revealed, with the first such instance coming in April 2024. 

“All six previous instances signaled a bullish momentum.”

The day prior, Cointelegraph reported on Bitcoin’s Relative Strength Index (RSI) flashing a similarly rare upside signal on 4-hour timeframes.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.