Bitcoin Dips Amid Trade Wars, Experts Advise Caution

Bitcoin Price Sees a Dip, Then a Small Jump, But Uncertainty Remains

Bitcoin’s price had a bit of a rollercoaster ride over the past 24 hours. It fell by 1.88 percent, trading at $98,110 (about Rs. 85.4 lakh) on February 5, 2024. This follows a drop earlier in the week after US President Donald Trump announced new import [[tariffs]]. But hold on, there’s more to this story. With the US President putting those tariffs on hold for now, Bitcoin’s price started climbing again.

Trade Tensions and [[Tariffs]] Impact Bitcoin

Earlier this week, Bitcoin was trading at $94,300 (around Rs. 82 lakh). Then it briefly went above $100,000 after President Trump decided to hold off on tariffs against Canada and Mexico. But this good news didn’t last. China retaliated with its own tariffs on US goods, causing more trade war worries. This uncertainty pushed Bitcoin back down to $98,000.

What’s happening in India?

In India, Bitcoin dropped by under two percent, reaching $104,890 (around Rs. 91.4 lakh). Market experts are saying that the [[market]] is cautious because of all these trade issues.

Ether Also Takes a Dip

Ether (ETH), another popular [[cryptocurrency]], also saw its price fall. It dropped by 1.07 percent on international exchanges, trading at $2,715 (roughly Rs. 2.36 lakh). On Indian exchanges, it’s trading at $2,905 (roughly Rs. 2.53 lakh) after a similar drop.

Experts Advise Caution

Experts are warning [[investors]] to be very careful. The global situation is changing fast, and unexpected things can happen. They say the current situation mixes fear and greed in the market. With the US-China trade war still going on, cryptocurrencies are seen as both a protection against inflation and a risky investment.

Other Cryptocurrencies Also Affected

The prices of most other cryptocurrencies, like Dogecoin, Cardano, and others, were also down today. The total value of the cryptocurrency market fell by 2.69 percent to $3.22 trillion (roughly Rs. 2,80,59,241 crore).

Regulatory Changes Could Bring Optimism

There’s some news about changes to cryptocurrency regulations in the US. A group is working on creating a new regulatory framework, and there are talks about a ‘strategic Bitcoin reserve’. These developments could bring more positive feelings and investment into the cryptocurrency market.

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