Bitcoin is entering its strongest month of the year in February, with a 14% average return since 2013. However, investors are bracing for volatility due to global trade tensions and uncertainty about tariffs. Co-founder of Nexo, Antoni Trenchev, warns that sweeping tariffs could add pressure to bitcoin prices.
President Trump signed an order imposing 25% tariffs on imports from Mexico and Canada, as well as a 10% duty on goods from China, but later paused duties on Mexico and Canada. The uncertainty surrounding trade tensions is causing market fluctuations.
Despite this, the industry is experiencing positive news, including former Securities and Exchange Commission chair Gary Gensler’s departure, President Trump’s appointment of crypto-friendly Commissioner Mark Uyeda as interim chair, and the repeal of the SAB 121 accounting rule. These developments could lead to regulatory clarity and innovation in the U.S.
Trump has also signed executive orders outlining plans for a government-run sovereign wealth fund, which some speculate could be used to house confiscated cryptocurrency holdings. Crypto enthusiasts are eagerly awaiting crypto czar David Sacks’ press conference, where he is expected to reveal several crypto-related plans.
Grayscale’s Zach Pandl notes that the market has not fully reacted to Trump’s executive order, and investors may wait for the longer-term implications before deploying capital. However, higher tariffs and uncertainty about AI valuations could weigh on the equity market, affecting cryptocurrency prices.
Source: https://www.cnbc.com/2025/02/04/bitcoin-february-outlook.html