Uncertainty has hit the Bitcoin (BTC) market despite closing January above the psychological $100,000 level. However, the leading digital asset has slid below this notable level just a day before the first business day in February.
Market observers attribute the dip to inflation worries that have swept the broader market. Most market participants fear that President Donald Trump’s imposition of tariffs on the trio of Mexico, Canada, and China could trigger inflation.
Others see the dip as part of a wider market correction, which could plunge BTC to $95,000. Ryan Lee, chief analyst at Bitget Research, however, identifies $95,000 as a crucial support level.
Lee stressed the need for investors to monitor the broader financial space as it concerns federal policy expectations. He also expects market sentiments to play a role in determining the next move for Bitcoin.
Interestingly, Lee believes Bitcoin’s price might react to macroeconomic factors. Notably, the U.S. labor report could shape the coin’s price outlook for February. The Bureau of Labor Statistics in the U.S will release its market report by Friday, February 7.
The price of Bitcoin could regain higher levels if the market report data paints the picture of a “slow economy.” This might spur investors to consider accumulating Bitcoin as an alternative, and the demand could push the price up.
Meanwhile, Sensei, another analyst on X, in a post, described the current Bitcoin dip as a “huge bear trap.” He noted that BTC traders anticipating further decline might get caught unaware of Bitcoin’s rebound.
Huge Bear Trap.
Be ready. pic.twitter.com/MDkqMrDNsG
— Sensei (@SenseiBR_btc) February 2, 2025
Sensei calls on traders to exercise caution, particularly those trading on short positions. If his projections turn out accurate, Bitcoin might record a sharp recovery.
As of this writing, Bitcoin is changing hands at $99,250.69, representing a 2.57% decline in the past 24 hours. The coin hit a low of $98,137.60 in earlier trading but has seen a mild 3.34% uptick to $42.78 billion in trading volume.
Analysts have projected that Bitcoin could climb as high as $180,000 in 2025 as they anticipate the coin to have a bullish year.
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