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The main decline began around 5:00/6:00 PM, and by morning Bitcoin had regained its positions but later fell again below the psychological level. According to Coinglass, over the past 24 hours, the liquidation volume in the crypto market amounted to $540 million of which $482 million was attributed to long positions. At the same time, a large share of forcibly closed positions relates to low-cap altcoins from the ”other” category. The largest digital assets also demonstrated a drop. Ethereum fell below $3,100, decreasing by 6.6% over the day. The hardest hit were SOL (-17.5%) and DOGE (-14.1%). ADA lost 9.8%, retreating to $0.88. U.S. Tariffs and Responses from Other Countries According to a statement from the White House on February 1, “Trump imposes a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.” “[The President] is taking bold action to compel Mexico, Canada, and China to fulfill their promises to stop illegal immigration and halt the flow of toxic fentanyl and other drugs into our country,” the statement said. In response to the new tariffs, Canadian Prime Minister Justin Trudeau announced at a press conference plans to impose a 25% tariff on certain American goods. According to CNN, the Ministry of Commerce of China is preparing to file a complaint with the World Trade Organization and “take appropriate countermeasures.” President of Mexico Claudia Sheinbaum stated in a lengthy post on X that she instructed the Minister of Economy to “implement Plan B,” which includes “tariff and non-tariff measures to protect the interests of the country.” “It turns out that Trump seems unafraid of economic and market fluctuations. His exact words: ‘There may be some temporary, short-term disruptions, and people will understand this.’ Based on the experience of 2018-2019, it is reasonable to expect at least a 10% correction in the stock market index,” journalist Colin Wu suggested. So far, the S&P 500 and Nasdaq 100 indices have not shown significant declines. However, in the long term, Wu sees U.S. tariffs as negative for macroeconomics. Impact on Cryptocurrency Opinions on Trump`s tariffs` impacts on the crypto industry within the community vary. Founder of Crypto Capital Venture Dan Gambardello considers the situation stable. “I cannot believe there’s a popular opinion floating around that Trump tariffs and his memecoins ended the bull cycle. Blackrock is continuing to accumulate ETH and BTC while retail frantically panics because crypto is currently consolidating” Gambardello added. Head of Alpha Strategies at Bitwise Invest Jeff Park noted that some “still do not realize what an amazing impact a tariff war will have on the first cryptocurrency.” “Listen, buddy, I’m all for Bitcoin, but it’s not like that. Bitcoin is not sufficiently separated from global markets and trades as a technology with triple leverage these days. Economic contraction of such scale means only pain for everyone, and we must be ready to condemn this,” argued Cinnaeamhain Ventures partner Adam Cochran.
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DWF Labs Co-Founder Says AI Market Dip Is a Rebalancing, Not the End of the Trend
Andrei Grachev, co-founder of crypto market maker DWF Labs , believes the recent AI market correction is a “narrative rebalancing” rather than the end of the trend . Posting on X (formerly Twitter) , Grachev compared the AI sector’s pullback to Bitcoin’s 2017-2018 crash , arguing that AI, AI agents, and DeFAI (Decentralized Finance + AI) remain at strong entry points with significant potential . AI Market Dip: Correction or End of the Trend? Market corrections are natural – Grachev views the dip as a healthy reset, not a collapse . Bitcoin’s 2017-2018 Comparison – After BTC crashed, it rebounded to new highs, which AI could also experience . Strong Entry Points for AI & DeFAI – The sector’s fundamentals remain strong , creating long-term opportunities . With AI-driven innovations gaining traction across industries , the market dip may offer strategic accumulation periods for investors . Why AI & DeFAI Still Have Strong Potential Key Factors Supporting AI Growth: Institutional & Enterprise AI Adoption – Companies are continuing to integrate AI into business operations . Decentralized AI Finance (DeFAI) Expanding – AI-powered DeFi applications are evolving rapidly . Long-Term Innovation Cycle – Like Bitcoin’s past market cycles, AI technology is still in an early adoption phase . Despite the short-term correction , AI’s growth trajectory remains intact , with new use cases and adoption continuing . What’s Next for AI & Crypto Markets? Potential AI & DeFAI Resurgence? – If historical tech cycles repeat, AI could see strong growth post-correction . Institutional Investments in AI – Big firms may use this dip to enter or expand AI exposure . Market Volatility Before Recovery? – Traders should expect continued short-term price swings . Grachev’s comparison to Bitcoin’s past cycles suggests that AI’s long-term potential remains promising . FAQs What did DWF Labs’ co-founder say about the AI market dip? Andrei Grachev described it as a “narrative rebalancing,” not the end of AI’s growth . How does this compare to Bitcoin’s 2017-2018 cycle? Bitcoin saw a major crash before rallying to all-time highs , and AI markets could follow a similar pattern . What is DeFAI? DeFAI (Decentralized Finance + AI) integrates AI-driven decision-making in DeFi protocols . Is AI still a strong investment opportunity? Yes, AI adoption continues expanding , and experts see the current dip as a potential accumulation phase . Will AI markets recover soon? While short-term volatility may continue, AI’s long-term fundamentals remain strong . Conclusion DWF Labs co-founder Andrei Grachev believes the AI market dip is a correction, not the end of the trend , drawing parallels to Bitcoin’s historic price cycles . With strong fundamentals, institutional adoption, and ongoing AI innovations , the sector is poised for future growth despite short-term fluctuations . As AI and DeFAI continue evolving, investors may see this dip as an opportunity rather than a setback . To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries. Coinpaper
Analysis: Bitcoin Set for Up to 35% Upside, $142K Target in Sight
Crypto analyst and trader Kevin Svenson remains bullish on Bitcoin (BTC) , predicting a potential upside of up to 35% from current levels, according to The Daily Hodl . Svenson highlights that Bitcoin’s strongest rallies historically begin around 40 weeks post-halving , and with the fourth halving occurring on April 19, 2024 , BTC could be on the brink of a major breakout . “I’m very bullish on $124,000, $134,000, and $142,000—these levels seem highly achievable,” Svenson stated. Why Analysts Predict Bitcoin Could Reach $142K Key Factors Driving Bitcoin’s Potential Upside: Post-Halving Price Action – Historically, Bitcoin’s strongest rallies begin 40 weeks after a halving event . Institutional Demand from Spot ETFs – Continued inflows into spot Bitcoin ETFs are fueling buying pressure . Favorable Macro Conditions – Potential Federal Reserve rate cuts could boost risk-on assets like BTC. Bullish Technical Breakout Signals – Bitcoin is breaking key resistance levels, aligning with historical cycles . With these factors aligning, BTC could surge toward $142K in the coming months . Bitcoin’s Historical Halving Cycle Trends Bitcoin’s past bull markets show strong post-halving rallies : 2012 Halving: BTC surged 9,000% in the following year . 2016 Halving: BTC climbed 3,000% within 18 months . 2020 Halving: BTC rallied 600% within a year , peaking at $69K in 2021 . If Bitcoin follows historical patterns, a move toward $142K is within reach . Can Bitcoin Hit $142K in 2025? Bullish Scenario: If institutional adoption, ETF inflows, and macro factors align , BTC could easily reach $142K . Bearish Risks: A weaker global economy or regulatory setbacks could slow Bitcoin’s momentum . Key Levels to Watch: $124K: First major resistance $134K: Intermediate breakout level $142K: Full upside target A break above $110K–$115K could trigger the next leg of Bitcoin’s bull run . What’s Next for Bitcoin? More Institutional Accumulation? – Large funds may continue increasing their Bitcoin ETF holdings . Bitcoin Halving Narrative Strengthens – As supply tightens, BTC’s scarcity could drive prices higher . Potential for New All-Time Highs? – A breakout past $142K could open doors to price discovery mode . If historical trends hold , Bitcoin’s next major rally may be just beginning . FAQs Why is Bitcoin expected to rise 35%? Bitcoin’s post-halving cycle, ETF demand, and bullish technicals suggest a potential 35% upside . What is the Bitcoin price target? Analyst Kevin Svenson predicts Bitcoin could hit $124K, $134K, and $142K in 2025. How does the Bitcoin halving impact price? Halvings reduce BTC supply issuance , historically leading to strong post-halving rallies . Could Bitcoin hit a new all-time high this year? Yes, if BTC breaks past key resistance levels and maintains strong institutional demand . What are the risks to Bitcoin’s bullish outlook? Weak macro conditions Regulatory concerns Unexpected market corrections Conclusion Bitcoin’s post-halving momentum and institutional demand could drive prices up to $142K , with a potential 35% upside from current levels . If historical trends repeat , BTC may be entering the strongest phase of its bull market , with Q1 and Q2 2025 set to be crucial periods . Traders should watch ETF inflows, macroeconomic shifts, and key resistance levels for further confirmation . To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries. Coinpaper
