Bitcoin (BTC) Market Enjoys Sharp Recovery After Surging Past the $102K Mark

The crypto market enjoyed a sharp recovery on Feb. 4, with Bitcoin surging past the $102K mark after experiencing a sharp drop the day before.

Bitcoin price surged past the $102,000 mark on Feb. 4, recovering swiftly from a sharp drop the previous day as the crypto market enjoyed a sharp rebound.

Bitcoin price hit a low of around $91,229 on Feb. 3 following the announcement of major tariff hikes by U.S. President Donald Trump. However, the world’s leading cryptocurrency enjoyed a quick rebound, surging past the $102K mark on Feb. 4.

Renowned crypto market analyst Michael van de Poppe noted on X that Bitcoin’s rapid recovery was to be expected due to the high volatility in the market. According to van de Poppe, a new all-time high (ATH) is still possible this month if Bitcoin manages to stay above the $93,000 level.

Bitcoin price dropped sharply on Feb. 3 amid market concerns over Trump’s decision to impose 25% tariff hikes on Canada, Mexico, and China, sparking fears of a potential trade war. Nevertheless, the Feb. 4 rebound was largely triggered by Trump’s subsequent move to temporarily halt the tariff hikes on Canada and Mexico after phone calls with the Mexican President and Canadian Prime Minister.

Another factor that likely contributed to Bitcoin’s recovery was the massive liquidation of speculative bets on Feb. 3. The event marked the worst single-day liquidation in history, even surpassing the collapses of Terra (LUNA) and FTX, according to crypto analyst Miles Deutscher.

As short sellers rushed to cover their losses, a surge of buying pressure fueled Bitcoin’s upward momentum, pushing its value even higher. Finally, the signing of a new executive order by the U.S. President directing the creation of a sovereign wealth fund, to be led by the U.S. Treasury and Commerce Departments, may have sparked further interest in Bitcoin.