Recent geopolitical developments, including President Donald Trump's decision to pause proposed tariff hikes, have provided some relief to the cryptocurrency market, allowing Bitcoin to stabilize. This stabilization comes after a significant drop earlier in the week, with institutional investments into Bitcoin ETFs, such as BlackRock's iShares Bitcoin Trust, further bolstering market sentiment. Despite these positive factors, analysts remain cautious, noting that Bitcoin's Relative Strength Index (RSI) suggests it may not yet be in an optimal position for new long trades. El Salvador's continued accumulation of Bitcoin reflects ongoing confidence in its long-term potential, but Matrixport analysts advise patience for investors seeking favorable entry points.
The Proshares Ultra Bitcoin ETF (BITU) experienced a decline, dropping 1.21% to $51.63 as of 6:00 AM on Wednesday, February 5.