Bitcoin Daily Report - 2025-02-05

February 04, 2025

Market Overview

Bitcoin weathered significant volatility this week, dropping from $105,000 to $92,000 after President Trump announced new tariffs on US trading partners, triggering $2B in crypto liquidations (News Source 1, 5). However, prices rebounded to $99,000 as tensions eased, with Bitcoin’s dominance hitting a 4-year high of 60.6% (News Source 10). Analysts note this aligns with historical post-capitulation recoveries, similar to March 2020 (Video 2).

Institutional & Regulatory Developments

US Sovereign Wealth Fund & Policy Shifts

  • Trump’s administration is advancing plans for a Bitcoin-backed sovereign wealth fund, managed by Bitcoin-friendly leaders Scott Bessent and Howard Lutnick (Cantor Fitzgerald). This could integrate Bitcoin into traditional finance and boost institutional adoption (Video 4, Video 3).

  • Bitcoin ETFs continue attracting billions in inflows (e.g., Bitwise), stabilizing prices during dips and reinforcing BTC’s role as a macro hedge (Video 5).

  • Arizona and Missouri are drafting bills to create state Bitcoin funds, signaling grassroots adoption (Video 1).

Regulatory Momentum

  • The SEC may approve altcoin ETFs (e.g., Solana), while new rules could curb meme coins and legitimize Bitcoin’s 24/7 trading infrastructure (Video 5).

  • Coinbase is lobbying to allow banks to offer crypto services, potentially broadening accessibility (Reddit).

Geopolitical Catalysts

  • Tariff Wars: Trump’s 10% tariff on Chinese goods and China’s retaliatory 15% coal/gas tariffs have injected uncertainty. Analysts suggest Bitcoin could benefit as a hedge against dollar weakness (News Source 3).

  • US Treasury Blockchain Plans: Elon Musk confirmed proposals to put the Treasury on a blockchain, with Dogecoin surging on speculation of Musk’s influence (Reddit).

Technical Analysis & On-Chain Signals

  • Price Action: Bitcoin rebounded from $91k to $113k, with strong support at the 50-day moving average. Targets of $150k–$180k are projected long-term (Video 6).

  • Hashrate Milestone: The network hit 800 quintillion hashes/sec, underscoring unprecedented security (Reddit).

  • Caution advised: A “shocking finding” warns of indecisive markets—wait for a close above $16k to confirm bullish momentum (Video 7).

Community & Sentiment Watch

  • HODLers Unshaken: A dormant wallet moved 50 BTC mined in 2010 (purchased at $0.10), now worth $5M+ (Reddit).

  • Retail Concerns: Reddit users debate whether crypto is becoming a tool for wealth inequality, citing rug pulls and manipulation (Reddit).

  • El Salvador Buys More: The nation added 11 BTC, raising reserves to 6,067 BTC (Reddit).

Conclusion & Strategic Takeaways

  1. Short-Term: Expect volatility from tariff resolutions and SEC policy shifts. Support at $92k remains critical.

  2. Long-Term: Institutional adoption (ETFs, sovereign funds) and regulatory clarity anchor a bullish outlook.

  3. Watch For:

  4. US Treasury blockchain developments (Video 1).

  5. Bitcoin’s inclusion in Trump’s wealth fund (Video 4).

Stay nimble, buy dips, and keep a multi-year horizon.