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Anticipation Surrounds Bitcoin (BTC) Price amid Trump Tariffs Announcement; Short Sellers Potentially Expose $9.41 Billion in Risk

Bitcoin's value lingers near $85,000 amid anticipation of Trump's tariffs, with approximately $9.41 billion worth of short positions at risk of being liquidated if the crypto surpasses $90,000.

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Market anticipation lingers for Trump's tariff announcement as bitcoin prices flirt with $85,000,...
Market anticipation lingers for Trump's tariff announcement as bitcoin prices flirt with $85,000, with a staggering $9.41 billion in short positions at risk of liquidation should the price surge to $90,000.

Fresh Take on the Crypto Conundrum

Anticipation Surrounds Bitcoin (BTC) Price amid Trump Tariffs Announcement; Short Sellers Potentially Expose $9.41 Billion in Risk

Let's chat about the latest goings-on in the world of Bitcoin, shall we? This cryptocurrency, currently hanging around the $85,000 mark, is caught in a bit of a pickle – waiting on President Donald Trump's upcoming tariff announcements, which could send Bitcoin prices skyrocketing or plunging.

What's at stake? A staggering $9.41 billion could be on the line if Bitcoin hits the $90,000 mark, with short positions facing liquidation. If the market keeps moving upward, this short squeeze might push Bitcoin higher even further into the stratosphere.

"With Liberation Day looming, the uncertainty surrounding the size of the tariffs has left Bitcoin and other risky assets in a bit of a holding pattern," explains Nic Puckrin, founder of The Coin Bureau. Puckrin notes that Bitcoin has recently closed its most recent CME gap that opened over the weekend around $83,000 to $84,000.

Thing is, Bitcoin currently rests below its 200-day average, and 24-hour liquidations are fairly low, under $250 million. This sorts of hints that momentum may swing back to the downside, as suggested by market watchers.

Crypto-Tariff: A Complicated Relationship

Tariffs and Bitcoin dance a dance as complicated as a Night at the Roxbury, baby. James Butterfill, head of research at CoinShares, explains that initially, tariffs could slow economic growth, leading to a drop in demand for risky assets like Bitcoin.

Butterfill goes on to say that inflated inflation might spur investors to speculate on higher interest rates, which could in turn cause a brief drop in Bitcoin's price, as the crypto often mirrors stock markets.

However, some analysts believe tariffs' effects on Bitcoin might be less pronounced than other factors in the market. Despite Bitcoin's struggles lately, several other elements have already been weighing on investor sentiment well before the tariff announcements.

Predicting the Future: A crystal ( crypto ) ball, anyone?

Opinions are split on Bitcoin's future direction – some analysts, like Puckrin, believe a breakout is possible if tariff news turns out to be milder than expected, with $88,000 being the price to watch. But, if there's a tariff shock, Bitcoin might plummet to $79,000 in the short term or even drop to $73,000 if fear market-wide grips investors.

On the bright side, low trading volume over the last few weeks and a crypto Fear & Greed Index still hovering around fear levels could indicate that a bottom is near.

Peering Into the Future

Some market experts believe a market tidal wave is on the horizon, babe. Crypto analyst ‘Crypto Fella’ toys with a price chart suggesting that Bitcoin could drop between $78,692 and $70,000, only to surge toward a $94,655 target.

10X Research shares a similar sentiment, warning of a potential drop to $73,000, but they add that Bitcoin needs a refreshed narrative to power its next big upward swing.

Despite the uncertainty, institutional demand remains strong. Spot Bitcoin exchange-traded funds (ETFs) saw $2.75 billion in net inflows during the three weeks following January 21, despite the escalating trade war.

So, there you have it – the digital Wild Wild West, baby! As Trump's tariffs and other external factors continue to ebb and flow, Bitcoin will dance to their tunes. Buckle up and stay tuned for more sizzling crypto updates, y'all!

  1. Trading Academy: What causes a bull run?
  2. CoinDesk: Bitcoin Tumbles as U.S. Unveils Tariff Plans
  3. CoinTelegraph: Bitcoin price analysis for Jan. 21st: BTC Bears Regain Control After Brief Pullback
  4. MarketWatch: U.S. Exports to Europe Could Double if Brexit and Tariff Talks Fail, Report Says
  5. The stock market's response to tariff announcements could have a significant impact on the price of cryptocurrencies like Bitcoin and Ethereum, as they often mirror traditional financial markets.
  6. The uncertainty caused by tariff announcements might lead to a drop in the demand for risky assets, such as Bitcoin, due to a potential slowing of the economy and inflation.
  7. Market watchers suggest that Bitcoin's momentum might shift back to the downside, with a possible drop below its 200-day average and low 24-hour liquidations.
  8. Despite the looming tariff announcements and their potential effects on Bitcoin, institutional demand for cryptocurrency remains strong, leading to increased investment in products like spot Bitcoin exchange-traded funds (ETFs).

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