Eric Trump, the son of the former US president, sparked a wave of interest in the cryptocurrency market after he posted a tweet on the “X” platform on February 6, in which he urged his followers to enter the Bitcoin market. He said in his tweet: “Looks like a good time to get into BTC!”, which pushed Bitcoin past the $98,000 barrier. However, the increase was very small, as the price subsequently stabilized at around $97,650, with a slight increase of 0.4%.
The statement came at a crucial time for the cryptocurrency market, which has seen remarkable movements in recent weeks. On February 1, Eric Trump’s tweet about Ethereum coincided with a sharp decline in the market, as Ethereum fell by 37% after President Trump announced new tariffs. However, Ethereum has since staged a remarkable recovery, regaining over 35% of its value in less than 18 hours, settling at around $2,830 on February 6.
While Eric Trump’s tweets may raise questions about their direct impact on market movements, Bitcoin’s current state is different from Ethereum’s at the time. While Ethereum was oversold and had reached the bottom of the market, Bitcoin is currently trading near its all-time high, reducing the likelihood of a sudden market turnaround.
In this context, the most prominent question among traders remains: Will Bitcoin continue its upward trajectory, or will Eric Trump’s tweet be just a passing fad in the cryptocurrency market?
Bitcoin Price Prediction: Recovery and Continued Support from Eric Trump and WLFI
After losing nearly 5% in the past two days, Bitcoin has staged a slight recovery, rising to trade above $98,000 on Thursday. Eric Trump has encouraged adding Bitcoin to his family-backed cryptocurrency exchange, World Liberty Financial (WLFI).
Economic data and its impact on Bitcoin price
Data from Santiment shows that Bitcoin whales have been hoarding more coins during the recent market correction, while retail traders have been struggling to liquidate their holdings due to volatility. This suggests that whales in the market may be absorbing coins sold by other small wallets, boosting the chances of a major Bitcoin recovery in the future.
Traders are also watching for the impact of economic data on the market. US Treasury Secretary Scott Bessent announced late Wednesday that focus will be on lowering the 10-year Treasury yield, rather than short-term interest rates set by the Federal Reserve. These comments have attracted interest from traders, as lower yields and interest rates are seen as positive factors supporting risky assets like Bitcoin.
In addition, David Sachs, President Trump’s chief crypto strategist, indicated that there are plans for a Bitcoin reserve, which will help boost confidence in the digital market and drive more investors towards cryptocurrencies.
Bitcoin Whales and the Market Correction
The Bitcoin market saw a significant movement in February, with a significant growth in wallets holding more than 100 Bitcoin. On the other hand, the number of wallets holding less than 100 BTC has declined, indicating that the big whales in the market are continuing to accumulate more coins. This phenomenon provides a strong basis for the possibility of another rise in the price of Bitcoin, even if it takes a few more weeks for the bullish effect to become clear.
Challenges for Bitcoin in the Near Term
Bitcoin continues to witness significant volatility, and the currency faces several challenges that may determine its direction in the near term. These challenges include the psychological support level at $90,000, global economic fluctuations, movement of whales in the market, in addition to technical indicators that may indicate a continuation of the correction.
Bitcoin Price Prediction: The Challenges Ahead
Bitcoin price has recently witnessed some sharp fluctuations, as the digital currency has fallen from its historical highs to its lowest levels in a short period of time. However, with each downward movement, it appears that the market is catching its breath and gradually regaining its strength. In this context, a set of challenges that Bitcoin may face in the coming period emerge, which may determine the currency’s path in the near term.
1: Psychological resistance at $90,000
Among the biggest challenges that Bitcoin may face in the coming period is the important psychological support level at $90,000. This number is a critical point in the currency’s path, as a successful breakout or failure to maintain this level may significantly affect Bitcoin’s path. If Bitcoin fails to maintain this support, it may continue to decline, opening the door to larger declines that may reach lower levels.
On the other hand, if the currency manages to stay above this level and regain some upward momentum, this may be a sign that the correction has ended and that the currency is ready to continue its rise towards new levels.
2: Market Volatility and Economic Concerns
The Bitcoin market is experiencing a lot of volatility due to macroeconomic factors, such as changes in interest rates and monetary policies followed by the US Federal Reserve. With statements from US government officials such as Treasury Secretary Scott Bessent about lowering Treasury yields, traders are anticipating the impact these decisions may have on cryptocurrencies.
At the same time, many investors are seeking to escape traditional assets such as stocks and bonds amid economic tensions, which may push them to invest in Bitcoin as a safe haven. But these moves may be risky in light of the high volatility witnessed by the markets.
