Bitcoin continues to face downward pressure after U.S. President Trump’s announcement of new tariffs on Canada, Mexico, and China triggered concerns about a global economic shock. The announcement led to significant losses in the crypto market, with Bitcoin dipping to a low of USD 91,500 before rebounding and Ethereum hitting USD 2,150. The resulting economic uncertainty has dampened investor sentiment, potentially delaying Bitcoin’s recovery and slowing growth in the broader crypto space. Moreover, declines could continue as market participants move towards safer assets amid ongoing uncertainty.
However, positive momentum continues on the institutional front, with BlackRock’s IBIT and Fidelity’s FBTC driving growth in Bitcoin ETFs. January alone saw nearly USD 5 billion in inflows, setting the stage for a potential record year. This institutional interest could push Bitcoin ETF investments to more than USD 50 billion by the end of 2025, a significant increase from 2024’s USD 35.2 billion. This rising institutional involvement reinforces Bitcoin’s long-term value and contributes to market confidence in the broader crypto ecosystem.
Meanwhile, Utah’s proposed Bitcoin reserve bill could pave the way for further institutional adoption of digital assets. The bill could provide more legitimacy to Bitcoin and increase its role in the financial system. If successful, it could also encourage other states to follow, strengthening confidence in the crypto market.
