Bitcoin has been experiencing a period of volatility, with the price struggling to break above the $95,000 mark.
From navigating macroeconomic shifts to outpacing traditional assets, Bitcoin’s early-stage adoption is already a game changer.
Could it be your business’s next move?
Read more 👉🏼 https://t.co/72KmfVDjre pic.twitter.com/S2txa4Sk4g
— Binance (@binance) February 12, 2025
Despite the negative sentiments surrounding the higher-than-expected Consumer Price Index, which showed a 0.5% increase for the month and a 3% rise from the previous year, Bitcoin has managed to rebound and maintain its position above $95,000. Analysts believe that the cryptocurrency’s ability to stay within the range of $90,000 and $109,588 for several weeks is crucial for future price movements.
Today's inflation data will likely support the US Dollar. Both #Bitcoin and Gold have gained vs the US Dollar despite its strength vs other fiat currencies pic.twitter.com/vGGRrUyyn5
— Grayscale (@Grayscale) February 12, 2025
If the price falls below $94,000, it could potentially decline further to the critical support level of $90,000, which buyers are expected to defend vigorously. The uncertainty surrounding President Donald Trump’s decision to impose fresh tariffs has also contributed to the market volatility. The upcoming inflation report is expected to play a significant role in determining Bitcoin’s price trajectory.
If you can’t beat bitcoin, you have to buy it.
That is how the game works.
— Anthony Pompliano 🌪 (@APompliano) February 12, 2025
Bitcoin’s market turbulence amid tariffs
Lukman Otunuga, Senior Analyst at FXTM, stated, “The combination of fresh tariffs, Federal Reserve Chair Jerome Powell’s testimony, and key inflation data creates a perfect storm for market volatility. If tariffs fuel inflation fears, the Fed may be forced into a more hawkish stance, adding further uncertainty.
Investors should brace for major moves in the dollar, equities, and gold.”
Despite the sluggish price growth, some firms are increasing their investments in Bitcoin, anticipating a pro-Bitcoin regulatory landscape under Trump’s second presidency. MicroStrategy, the company with the largest Bitcoin holdings on its balance sheets, recently announced an acquisition of $742.2 million in Bitcoin. Dom Harz, co-founder of the Build On Bitcoin Layer-2 hybrid blockchain network, commented on the growing corporate adoption of Bitcoin and cryptocurrencies, stating, “Corporate adoption of Bitcoin and crypto is accelerating, and ETFs [exchange-traded funds] have a lot to do with it.
The most interesting change we’ve seen over the last two years is the mood shift between Bitcoin once being a speculative bet and now being a strategic play for corporations.”
As the market awaits the crucial inflation report and navigates the uncertainties surrounding tariffs and regulatory changes, investors are advised to remain cautious and prepared for potential market fluctuations.
