Bitcoin (BTC) Price Dips 3% to $101,530 as Market Cap Drops to $2.01T Ahead of Trump Tariffs

Bitcoin worth $64.04 million was liquidated in the past 24 hours, with $45.34 million coming from long liquidations and $18.69 million from short liquidations.

Bitcoin price dropped 3% on Thursday as key support levels are being tested amid upcoming tariffs from the Trump administration.

What Happened: Bitcoin traded lower on Thursday morning after showing signs of recovery earlier in the week. The world’s largest cryptocurrency dropped 3% over the past 24 hours and was trading at $101,530.19 at the time of writing.

Bitcoin fell below the $102,000 level on Wednesday after showing signs of strength earlier in the day and was trading above the $106,000 price point earlier this week.

Bitcoin price showed strength in January with large gains and new all-time highs, but the cryptocurrency is now showing signs of weakness as it trades below the highs earlier in the month.

A recent analysis by Glassnode showed that Bitcoin’s 24-hour realized price was trading at $23,000, showing that most of the Bitcoin supply was acquired at this price point or lower.

The analysis also showed that Bitcoin’s market cap was trading at 4.5x the realized cap, which was last seen in April 2021.

Bitcoin’s 24-hour trading volume increased by 15.20% and stood at $43.41 billion at the time of writing. This volume was up from the 24-hour low of $33.9 billion.

BTC price chart. Source: TradingView

Impact of Tariffs on Bitcoin Price Movement: Several traders and analysts have pointed out the upcoming tariffs from the Trump administration, which are set to take effect on Monday, Feb. 1.

The tariffs are expected to impact the markets and traders are preparing for potential economic shifts, which could also affect the cryptocurrency market.

Earlier this week, Donald Trump announced that he would be increasing tariffs on China as a last-minute move before leaving office. The tariffs will apply a 25% duty on about $2.2 billion of Chinese goods.

The Trump administration also announced plans to increase tariffs on European goods, including sparkling wine, cheese and handbags. The tariffs will be applied retroactively from Oct. 12.