Escalating trade tensions between the U.S. and China have significantly impacted Bitcoin's price, as the imposition of retaliatory tariffs by China on U.S. products has reignited investor fears. This geopolitical uncertainty has led to a cautious approach in the crypto markets, resulting in a pullback in Bitcoin's price. Additionally, a decline in open interest in Bitcoin futures contracts suggests a more cautious stance among institutional investors. The anticipation of a press conference by David Sacks, the AI and crypto czar, has also kept traders on edge, as potential regulatory changes and the approval of crypto exchange-traded funds could influence market sentiment and investor confidence.
The Proshares Ultra Bitcoin ETF (BITU) experienced a decline, dropping 2.03% to $54.14 at 2:40 PM on Tuesday, February 4.