Bitcoin's $99K Surge Clouded by Tariff Fears

Bitcoin Surges to Touch $99,000

Bitcoin, the world's largest cryptocurrency, surged to touch $99,000 on February 3, 2025, marking a significant milestone in its ongoing bull run. The cryptocurrency has been on a tear, with its price increasing by more than 100% in the past year alone.

The recent surge in Bitcoin's price can be attributed to a variety of factors, including increased institutional investment, growing mainstream acceptance, and a favorable regulatory environment. Additionally, the cryptocurrency's limited supply and its role as a store of value have made it an attractive investment option for many.

However, the recent imposition of tariffs by U.S. President Donald Trump has raised concerns about the potential impact on the cryptocurrency market. The tariffs, which target major trading partners such as Canada, Mexico, and China, have led to a significant drop in cryptocurrency valuations, indicating a fragile market sentiment influenced by geopolitical tensions.

Analysts have warned that the tariffs could lead to a wave of uncertainty in financial markets, causing notable declines in cryptocurrency values and raising concerns among investors. The total market liquidation has been estimated to be at least around $8 billion to $10 billion, showcasing the significant impact of these economic policies on digital assets.

Despite the concerns, some crypto enthusiasts have advocated for a "buy the dip" approach, asserting that downturns could pave the way for future gains. Prominent financial commentator Alex Krüger notes that "aggressive tariffs are very negative for risk assets," suggesting that while short-term pain is inevitable, long-term recovery remains possible.

As Bitcoin adoption grows, the role of the asset has changed. Traders, investors, and enthusiasts still debate whether Bitcoin is ultimately a risk-on or risk-off asset. The price of risk-on assets is driven by factors such as earnings, market sentiment, bank policies, and speculation, while risk-off assets serve as safe havens during times of market uncertainty.

With the effect the tariffs have had on crypto markets, many analysts are now firmly in the camp that Bitcoin is — at the moment — a risk-on asset and that further market turbulence will likely negatively affect BTC price. Crypto and finance influencer Amit Kukreja said