Bitcoin Price Analysis: BTC Back Below $100,000 As China Responds To Tariffs

Bitcoin (BTC) dipped below $100,000 as markets stalled after reaching $102,500. BTC had dipped to an intraday low of $91,274 on Monday after Trump’s tariffs against Canada and Mexico came into effect. However, markets made a quick recovery after Trump agreed to pause tariffs and signed an executive order for the creation of a sovereign wealth fund. Bitcoin (BTC) Could Be Included In Wealth Fund President Donald Trump signed an executive order for the creation of a sovereign wealth fund in the US. The order outlines plans for a wealth fund for the development of the US economy. It has drawn considerable attention from members of the crypto community, who believe the fund could include BTC . The fund will be the first-ever sovereign wealth fund to serve as a tool for economic development. Donald Trump has tasked the Treasury and Commerce Departments with the responsibility to create the fund. The order instructs both departments to submit a plan for such a fund within 90 days. This includes investment strategies, fund structure, funding mechanisms, and a governance model. According to Treasury Secretary Scott Bessent, the fund will be established within 12 months. “We're going to stand this thing up within the next 12 months. We're going to monetize the asset side of the US balance sheet for the American people.” The prospect of a sovereign wealth fund has stirred optimism within the crypto community, with speculations about the addition of BTC to the fund. Bitwise Senior Investment Strategist Juan Leon stated the inclusion of the flagship cryptocurrency in the fund is a realistic possibility. “First an EO to determine a strategic bitcoin reserve, and now a sovereign wealth fund. It looks to me like they could fold the former into the latter. Better yet, include accumulating bitcoin in the sovereign wealth fund while holding a separate strategic reserve.” Arthur Hayes Predicts $250,000 Arthur Hayes, Chief Investment Officer at Maelstrom, has predicted that BTC remains on track to reach $250,000, adding it would be a stepping stone towards bigger gains. Hayes stated that global economic pressures are forcing governments to print large amounts of money that could devalue fiat and set the stage for a Bitcoin surge. Hayes added that Trump and his team are working to reshape the world around the US, but such an effort will require printing vast amounts of currency. “It requires destroying the real value of government bonds in the United States.” According to Hayes, governments around the world are facing the same economic pressures and will have no choice but to flood the market with liquidity. Liquidations Could Have Surpassed Reported Value According to Ben Zhou, CEO of ByBit, real total liquidations were significantly more than the reported $2 billion, estimating the actual figure was closer to $8-10 billion. He added that ByBit’s 24-hour liquidation alone was $2.1 billion, compared to the $333 million recorded on Coinglass. “I am afraid that today's real total liquidation is a lot more than $2B by my estimation, it should be at least around $8-10b. FYI, Bybit's 24-hour liquidation alone was $2.1B. As you can see in the below screenshot, Bybit 24hr liquidations recorded on Coinglass was around $333m.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) and other cryptocurrencies face renewed pressure thanks to trade tensions between the US and China, rattling investor confidence. BTC made a strong recovery after Monday’s dramatic collapse but has run into uncertainty yet again after China retaliated to Trump’s tariffs. The US imposed a 10% tariff on all Chinese goods, with China retaliating and putting tariffs on products imported from the US, including oil. The country added it was opening an investigation against US tech giant Google for alleged antitrust violations. The developments have raised the prospects of a full-blown trade war between two of the world’s largest economies, adversely impacting market sentiment. As a result, markets are facing increased volatility and bearish sentiment, as highlighted by BTC’s price action. BTC is back in the red during the current session, wiping out gains from yesterday’s relief rally, and slipping below $100,000. However, some analysts have suggested a prolonged trade could be beneficial to BTC and other cryptocurrencies. However, the current downturn is due to macroeconomic factors and an increasingly competitive AI race. BTC has faced considerable volatility over the past week, plummeting to an intraday low of $97,766 last Monday, briefly slipping below the 20 and 50-day SMAs before recovering and settling at $102,064. The price continued to fall on Tuesday, dropping 0.69% to $101,362 after a failed relief rally. BTC recovered on Wednesday, rising 2.27% and moving to $103,663. Buyers retained control on Thursday as BTC rose to an intraday high of $106,296 before losing momentum and settling at $104,553. However, sentiment changed on Friday as the price fell nearly 2% to $102,616. Source: TradingView BTC slipped below the 20-day SMA on Saturday, dropping by 1.54% to $101,041. Bearish sentiment intensified on Sunday as BTC slipped below $100,000 and the 50-day SMA, falling just over 3% to $97,881. With markets tanking on Monday, BTC plunged to an intraday low of $91,274. However, it recovered from this level to reclaim $100,000 and settle at $101,579, moving above the 50-day SMA after registering an increase of nearly 4%. However, markets were rattled after China retaliated to Trump’s tariffs. As a result, BTC stalled and fell back into the red. The flagship cryptocurrency is down 2.50% and has slipped below $100,000 to trade at the $99,000 level. If BTC continues to drop, we could see a drop to $95,000. Buyers must keep BTC above $99,000 and reclaim $100,000 to spark a reversal. However, as the RSI and MACD indicate, sellers have the upper hand. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.