Bitcoin Price and Market Overview
Weekly Recap: Bitcoin has been showing strong movement over the past week, currently trading around 102,000. The key levels to watch are 100K as support and 109K as resistance. Earlier, BTC briefly dipped towards 98K, but buyers quickly stepped in. February has historically been a positive month for Bitcoin, and with the recent trends, traders are speculating if this will hold true again.
Source | Tradingview
Macroeconomic and Political Influences
Trump’s Economic Moves: The U.S. government is implementing a new 10% tariff on China, adding to the already existing trade barriers. At the same time, Nvidia CEO Jensen Huang met with US President Trump, while an investigation began into whether DeepSeek illegally bought Nvidia’s chips through third parties in Singapore. This could have significant implications for the AI and chip industry.
U.S. Economic Data and Its Impact: Key economic indicators released last week showed mixed results:
Initial jobless claims: Lower than expected (207K vs. 224K), which was positive for the U.S. dollar.
GDP Price Index (Q4): Lower than expected (2.2% vs. 2.5%), which could influence Federal Reserve policy.
Federal Reserve and Banking Developments:
The Fed kept interest rates steady at 4.5%.
Jerome Powell confirmed that banks are fully capable of serving crypto clients, hinting at potential regulatory clarity for the industry.
Bitcoin Market Trends and Institutional Activity
Bitcoin Adoption and Market Behavior: Bitcoin is seeing increased accumulation by U.S. entities compared to international holders. This suggests growing confidence in BTC as an asset class. Additionally, institutional investors continue to accumulate Bitcoin at record levels, while smaller investors have been selling. BTC has risen by nearly 12% this month, aligning with historical trends of February being a positive month for Bitcoin.
Source | Coinglass
Global Bitcoin Accumulation: The Czech Central Bank governor is advocating for investing 5% of the country’s $146 billion reserves into Bitcoin. If approved, this could significantly impact Bitcoin’s price and adoption.
ETF and Institutional Moves:
Bitwise applied for a Dogecoin ETF in the U.S.
MicroStrategy acquired an additional 10,107 BTC for 1.1 billion at an average price of 105,596 USDT per BTC, bringing its total holdings to 471,107 BTC worth 30.4 billion.
Arthur Hayes, co-founder of BitMEX, predicts a short-term BTC dip to 70K-75K, followed by a surge to 250K before the end of the year.
Source | X @CryptoHayes
Blockchain, AI, and Technological Developments
Tether’s Massive Profits: Tether reported an astounding $13 billion in net profits for 2024. The company now holds $113 billion in U.S. Treasury bonds, $7 billion in excess reserves, and $7.8 billion worth of Bitcoin. This raises questions about regulatory scrutiny and the growing role of stablecoins in financial markets.
Blockchain and AI Developments:
China announced a $140 billion investment into AI development.
DeepSeek, a Chinese AI firm, disrupted the market with its low-cost AI model, causing Bitcoin to temporarily drop to 98K as tech stocks, including Nvidia, suffered losses.
Market panic set in as retail investors sold Bitcoin in fear, while institutions took advantage of the dip.
Nvidia’s stock price dropped 17% in a single day, losing $593 billion in market capitalization, due to fears of reduced demand for its GPUs.
Injective (INJ) Leading Liquidity Flow: Injective Protocol (INJ) remains one of the top-ranking networks in terms of net liquidity flow, proving its growing strength in the Layer 1 blockchain ecosystem.
Source | X @Injective
Regulatory and Legal Updates
Elon Musk and Blockchain Integration: The Department of Government Efficiency, led by Elon Musk, met with public blockchain representatives to evaluate their technology.
Regulatory Shifts and Legal Cases:
U.S. Senator Bob Menendez, known for opposing El Salvador’s Bitcoin adoption, was sentenced to 11 years in prison for corruption charges.
The SEC dropped civil charges against Ripple (XRP), potentially marking the end of its long legal battle.
Brazil banned Worldcoin from compensating users with money or tokens in exchange for biometric data, signaling stricter privacy measures.
Crypto Payments and Platform Updates
Crypto Payment Innovations: Donald Trump’s official watches are now being sold online, and customers can pay using Bitcoin or the TRUMP token via Solana Pay.
Source | gettrumpwatches.com
Social Media and Payment Integrations:
Platform X (formerly Twitter) is partnering with Visa to introduce direct payment solutions within its ecosystem.
Jupiter Exchange and Major Updates:
Jupiter announced a 30% token burn, reducing supply by 3 billion tokens.
The platform launched the Virtuals Protocol on Solana.
AI Agents Marketplace was introduced, creating a new category in decentralized AI services.
Jupiter acquired a majority stake in the Moonshot app.
Conclusion
The crypto market experienced a mix of volatility, institutional interest, and regulatory shifts this past week. With Bitcoin maintaining its 100K support and February historically being a strong month, traders are optimistic. Meanwhile, geopolitical tensions, AI developments, and institutional Bitcoin accumulation continue to shape the broader financial landscape.
This article is not financial advice. Always do your own research (DYOR). For more insights, check out Millionero’s blog. When you’re ready, trade spot and perpetuals on Millionero.