Bitcoin drops below $100K amid US-China trade tensions

Bitcoin's (CRYPTO:BTC) price fell below $100,000 on February 4 as renewed trade tensions between the United States and China fueled market uncertainty. 

The drop followed the announcement of new tariffs by both nations, which heightened fears of a potential trade war.

President Donald Trump signed an executive order imposing tariffs on imports from Mexico, Canada, and China, while China retaliated with its own tariffs targeting oil, coal, and other goods.

Bitcoin initially rebounded after nearing $91,500, gaining over $10,000 in a single day.

However, the recovery was short-lived as news of China's countermeasures emerged, causing Bitcoin to reverse course and trade lower.

"Bitcoin bounced back swiftly and is currently acting within the range," crypto analyst Michaël van de Poppe stated, commenting on the volatility.

He added that maintaining support above $93,000 could pave the way for new all-time highs in February.

Other traders suggested that Bitcoin may establish a new trading range due to the ongoing market turbulence.

"After such an event, it feels logical for me to expect some sort of a new range to form," Phoenix, a crypto trader, remarked.  

Meanwhile, funding rates in derivatives markets have shown signs of bullish momentum.

Axel Adler Jr., a contributor to CryptoQuant, noted that Bitcoin’s funding rate turned negative for the seventh time this year.

He explained that previous instances of negative funding rates have often signaled upward price movements.

At the time of reporting, the Bitcoin (BTC) price was $98,613.23.