Bitcoin stabilized near $96,000 after peaking above $100,000, influenced by US jobs data. Ethereum’s institutional investments surged with $420 million in ETF inflows. External factors like proposed tariffs by Donald Trump contribute to market volatility. Investors are advised to remain informed and cautious amid shifting market narratives.

This past week, the cryptocurrency market witnessed significant activity, with Bitcoin (BTC) stabilizing around $96,000 after peaking above $100,000. The price surge was influenced by US employment data suggesting possible interest rate cuts. In contrast, Ethereum gained traction as institutional investments surged, with $420 million in ETF inflows recorded, far exceeding Bitcoin’s inflows, hinting at a potential shift in market dynamics. Investors remain cautious due to external factors, particularly Donald Trump’s proposed tariffs on steel and aluminum, creating a climate of uncertainty.

During the preceding week, Bitcoin recorded highs of $101,989.41 on February 4, and lows of $93,973.94 on February 3, while Ethereum’s price fluctuated between $2,900.63 and $2,514.64. The overall cryptocurrency market experienced a minor increase in capitalization, reaching $3.17 trillion. Nevertheless, the market fear and greed index reflected caution with a score of 35, indicating prevailing fears in the market. Bitcoin now dominates 60.75% of the market.

Recent developments, like Trump’s tariff announcements, have intensified market volatility. Experts, including Edul Patel, expressed concerns over Bitcoin’s performance, suggesting that a failure to hold above $95,500 could lead to further declines. Conversely, analysts from the CoinSwitch Markets Desk noted the potential for recovery, citing Bitcoin’s resilience despite temporary downturns. Additionally, the Central African Republic’s launch of a new memecoin represents an intriguing maneuver in global cryptocurrency engagement.

Various industry leaders provided insights into current market conditions. Edul Patel remarked on the duality of current sentiment, pointing out that while Bitcoin briefly reached $100,000, the volatility remains significant. Thangapandi Durai highlighted the contradictions within the market narratives, emphasizing how quickly emotions can change from fear to hope, ultimately influencing price movements. In the context of these fluctuating conditions, traders are urged to remain vigilant.

The cryptocurrency market has been characterized by extreme volatility, with Bitcoin frequently testing significant support and resistance levels. Institutional interest is also evolving, as seen with Ethereum’s recent investment inflows. Factors such as US jobs data and political developments play a critical role in shaping market sentiment, highlighting the need for investors to conduct thorough research before entering or exiting positions in this unpredictable environment.

In summary, the cryptocurrency market continues to exhibit volatility with Bitcoin stabilizing around the $96,000 mark and Ethereum experiencing significant institutional inflows. External pressures, such as proposed tariffs and market sentiment, complicate the landscape. Investors are advised to remain cautious, considering the swift changes in market dynamics, while keeping abreast of developments that may impact prices.

Original Source: news.abplive.com

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