The recent decline in Bitcoin's price is largely driven by economic uncertainty following President Trump's announcement of new tariffs. The tariffs, set to take effect on February 1, include a 25% levy on Canada and Mexico and a 10% tariff on China, creating volatility in the cryptocurrency markets. This has led to a broader decline in the CoinDesk 20 Index, although Ethereum has shown some resilience. Additionally, U.S. labor market data and inflation figures are adding to the pressure on Bitcoin, with the PCE price index indicating persistent inflation, which could influence Federal Reserve policy decisions. Analysts suggest that Bitcoin could fall further if upcoming economic data does not support the cryptocurrency.
The 2x Bitcoin Strategy ETF (BITX) has experienced a significant drop, falling 5.46% to $59.69 as of 3:00 PM on Friday, January 31.