Bitcoin on track for key $100,000 level

Bitcoin price remained bullish on Thursday, rising from $96,300 to $98,100. If BTC price declines, support can be found at $93,000, while resistance may be encountered at $98,700. 

Ethereum traded sideways on Thursday, oscillating around the $2,720 level. If Ethereum's price declines, it may encounter support near $2,540, while if it increases, resistance may be encountered near $2,840.

Bitcoin price registered a new all-time high of $109,880 in January but has since been under pressure by increased risk aversion sentiment. Most major cryptocurrencies are under pressure on concerns that US President Donald Trump’s trade policies may start global trading wars. Bitcoin price dropped as low as $93,200 earlier this week but has rallied since, rising above the $98,000 level and flirting with the key $100,000 level.

Trump has been using threats of imposing trade tariffs as a negotiation tool to further his agenda with other countries. The uncertainty over Trump’s future policies and trade tariffs is generating a risk aversion sentiment, putting pressure on crypto markets.

Trump has threatened that he will announce reciprocal tariffs on many countries, which would raise US import taxes to match those imposed by the country’s other trading partners. On Tuesday, Trump threatened to impose 25% tariffs on foreign cars and semiconductor chips. If Trump goes through with these heavy tariffs, global inflation is likely to rise and the economic outlook will worsen, thus promoting a risk aversion sentiment, which puts pressure on crypto markets.

US President Donald Trump and Russian President Vladimir Putin met in Riyadh, Saudi Arabia on Tuesday, but the meeting was fruitless, driving risk sentiment down. Hopes that the crisis between Russia and Ukraine might finally end, however, dropped as Ukrainian President Volodymyr Zelenskiy refused to attend the meeting. Zelenskiy stated that fair negotiations to end the war should involve Ukraine and the EU. The Russian side has also toughened its stance, stating that further meetings between Trump and Putin are not currently necessary due to unresolved Russian demands regarding Ukraine’s pending membership in NATO.

Trump’s proposed plans for building a Bitcoin strategic reserve have been boosting Bitcoin price. Growing expectations that the US government will adopt a pro-crypto regulatory and fiscal policy are boosting crypto markets. 

Cryptocurrency prices are also affected by central banks’ interest rates. High interest rates stifle economic growth, putting pressure on crypto markets. The US Federal Reserve held interest rates steady at its January meeting, after delivering three consecutive rate cuts in 2024. FOMC policymakers voted unanimously to maintain the federal funds range to a target range of 4.25% to 4.50. 

The minutes of the January FOMC meeting were released on Wednesday and were overall hawkish, lowering Fed rate cut expectations. Policymakers were concerned with the impact that trade tariffs might have on US inflation and some Fed members stated that some measures of inflation had increased recently.

BTC/USD 1h Chart

ETH/USD 1h Chart

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Written by:
Myrsini Giannouli

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