February 12, 2025 — Bitcoin (BTC) is navigating a turbulent February as it grapples with renewed tariff threats, whale sell-offs, and looming macroeconomic events. Currently trading at $98,204, Bitcoin remains stuck in a three-month trading range, with analysts warning that its thin liquidity could lead to abrupt price movements.
Macroeconomic Catalysts in Focus
This week brings significant potential catalysts for Bitcoin’s price action. The release of Consumer Price Index (CPI) data for January and two testimonies from Federal Reserve Chair Jerome Powell before U.S. lawmakers are expected to inject volatility into the markets. Historically, such events have influenced Bitcoin’s trajectory, as traders adjust to shifting economic outlooks.
Tariff Concerns and Market Reactions
The U.S. government’s s renewed tariff policies—targeting multiple trading partners — have added another layer of uncertainty. While these measures have traditionally triggered volatility across risk assets, Bitcoin’s reaction has been relatively muted compared to gold, which has emerged as the primary beneficiary.
Whales in Distribution Mode
Adding to the bearish sentiment, on-chain data indicates that Bitcoin whales have been in distribution mode since late 2024. This trend suggests a lack of confidence among large holders, fueling speculation that they may have insights into impending market shifts.
Mixed Outlook Among Analysts
Despite these headwinds, not all market participants are pessimistic. Some analysts foresee a potential breakout from Bitcoin’s current range, with bullish predictions placing BTC’s price as high as $700,000 starting this quarter. Michael van de Poppe, a prominent crypto trader, anticipates a market-wide recovery driven by renewed momentum in altcoins and Ether (ETH), which currently trades at $2,700.
Range-Bound Movement Continues
However, other traders remain cautious. Poseidon, a popular crypto analyst, emphasized that Bitcoin has been oscillating between $90,000 and $110,000 for the past three months, dismissing calls for macro tops or bottoms until a decisive breakout occurs.
With markets on edge, all eyes are on this week’s economic data and policy developments, which could determine whether Bitcoin breaks free from its current range or faces further downside pressure.
Source: Cointelegraph
