Bitcoin Price Recovers Slightly, But Concerns on Fresh Tariffs, Inflation Persist

The price of bitcoin has somewhat recovered, but inflation and new tariff worries are still present.
Following a sharp decline over the weekend due to worries about new trade tariffs, Bitcoin witnessed a slight comeback on Monday, rising 1.3% to $97,873.0. Growing trade tensions between the United States and China caused market fears and reduced investor interest for risky assets like cryptocurrencies, which led to the weekend’s slide after a roughly 4% loss last week. Bitcoin was also affected by the possibility of ongoing inflation and even rising interest rates, which somewhat negated the positive attitude brought forth by regulatory changes.

Focus Shifts to Tariffs and Inflation

The weekend dip in bitcoin was a reflection of market-wide declines after new steel and aluminum import tariffs were announced. Following earlier duties on Chinese commodities, which led to China retaliating on important U.S. exports, this action was taken.


Bitcoin has not continuously held its value during times of market stress, despite being marketed as a hedge against market volatility. In contrast to Bitcoin, gold has just hit all-time highs. Following the tariff announcements, the U.S. currency appreciated, indicating concerns that they might fuel inflation and maintain high interest rates.

Market attention now turns to the U.S. Consumer Price Index (CPI) data due Wednesday. Analysts forecast a 2.9% year-over-year increase, matching December’s figure. Federal Reserve officials have noted that persistent inflation could reduce the likelihood of interest rate cuts. Uncertainty also exists regarding the inflationary effects of the implemented tariffs.

Strategy Accumulates Bitcoin:

The bitcoin treasury company Strategy, formerly known as MicroStrategy, revealed that it spent $742.4 million, or 7,633 BTC, between February 3rd and February 9th, at an average price of $97,255 per bitcoin. This raises their total assets to 478,740 Bitcoin, which is worth more than $46 billion. At an average price of $65,033 per bitcoin, the corporation has spent around $31.1 billion on bitcoin purchases, which accounts for more than 2.2% of the fixed supply of the cryptocurrency. Share sales were used to finance the most recent purchases. For upcoming bitcoin acquisitions, Strategy presently has billions of shares accessible.

Altcoins Mirror Bitcoin’s Price Action:

As Bitcoin recovered, other cryptocurrencies saw modest increases as well. Following a nearly 15% decline last week, Ether (ETH) increased 1.3% to $2,661.26. XRP rose 1.1% to $2.442 after dropping more than 20% in a single week. Cardano (ADA) increased 3.1%, Polygon (MATIC) remained unchanged, and Solana (SOL) surged 4.2%. Dogecoin (DOGE), one of the meme tokens, gained 0.5%.