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Good day, we are delighted to share another market update generated by the team at Secure Digital Markets!
Over the past week, Bitcoin (BTC) experienced significant volatility, primarily influenced by macroeconomic factors. On February 3rd, following the announcement of new tariffs by President Donald Trump, BTC's price dropped to a three-week low of approximately $91,441.89. This decline was part of a broader market sell-off as investors reacted to potential trade tensions.
However, Bitcoin demonstrated resilience, rebounding to around $101,500 by February 5th. As of today, BTC is trading at approximately $97,302, reflecting a 1.27% increase from the previous close. The intraday high reached $98,350, with a low of $94,747.
Ethereum (ETH) mirrored Bitcoin's volatility. On February 3rd, ETH's price fell to approximately $2,159.28 amid the market downturn. It has since recovered, currently trading at $2,677.57, marking a 1.53% increase from the previous close. The intraday high was $2,683.27, with a low of $2,541.34.
Solana (SOL) also faced fluctuations, currently priced at $202.92, up 1.62% from the previous close. The day's trading range saw a high of $208.58 and a low of $194.02.
In the broader market, the recent tariff announcements have heightened fears of a global trade war, leading investors to retreat from riskier assets, including cryptocurrencies. This sentiment contributed to a significant liquidation event on February 2nd, where over $2.2 billion was wiped out in 24 hours, affecting more than 700,000 traders.
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Gold Hits All-Time High While Bitcoin Struggles Amid Market Uncertainty
Gold surged to a new all-time high of $2,902 per ounce, gaining 17.5% year-to-date, driven by central bank purchases, geopolitical risks, and de-dollarization efforts. Major buyers in 2024 included Poland, India, Turkey, and China, with central banks expected to continue accumulating gold as a hedge against inflation and financial instability. Meanwhile, Bitcoin has risen just 5% year-to-date, facing volatility from President Trump’s tariff policies and broader macroeconomic uncertainty. While Bitcoin is often considered a hedge, its correlation with risk assets remains high, contrasting with gold’s increasing appeal as a safe-haven investment.
Strategy Resumes Bitcoin Buying With $742M Purchase, Total Holdings Reach 478,740 BTC
Strategy (formerly MicroStrategy) has resumed Bitcoin acquisitions, purchasing 7,633 BTC for $742.4 million at an average price of $97,255 per BTC, bringing its total holdings to 478,740 BTC (~$46 billion). The acquisition follows the sale of $742 million in stock, part of its “21/21” plan targeting a $42 billion capital raise for Bitcoin purchases. The company recently adopted new fair-value accounting rules, expected to add $12.75 billion to its balance sheet. Despite a $670.8 million Q4 loss, Strategy’s stock remains strong, having surged over 518% in the past year.
Global crypto investment products recorded $1.3 billion in net inflows last week, nearly doubling from the previous week, marking a fifth consecutive week of positive flows, according to CoinShares. Despite sharp market declines following President Trump’s tariff announcements, Bitcoin-based funds added $407 million, while Ethereum funds led inflows with $793 million, outpacing Bitcoin for the first time this year. The U.S. dominated with $1 billion in inflows, followed by Germany, Switzerland, and Canada. Crypto assets remain volatile, with Bitcoin and Ethereum trading at $97,817 and $2,647, respectively.
ETF Flow
Disclaimer
This research is for informational use only. This is not investment advice. Other than disclosures relating to Secure Digital Markets this research is based on current public information that we consider reliable, but we do not represent it is accurate or complete, and it should not be relied on as such. The information, opinions, estimates, and forecasts contained herein are as of the date hereof and are subject to change without prior notification. We seek to update our research as appropriate.
Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of crypto assets may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Fluctuations in exchange rates could have adverse effects on the value or price of, or income derived from, certain investments. We and our affiliates, officers, directors, and employees, excluding equity and credit analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives, if any, referred to in this research.
The information on which the analysis is based has been obtained from sources believed to be reliable such as, for example, the company’s financial statements filed with a regulator, company website, company white paper, pitchbook and any other sources. While Secure Digital Markets has obtained data, statistics, and information from sources it believes to be reliable, it does not perform an audit or seek independent verification of any of the data, statistics, and information it receives.
Unless otherwise provided in a separate agreement, Secure Digital Markets does not represent that the report contents meet all of the presentation and/or disclosure standards applicable in the jurisdiction the recipient is located. Secure Digital Markets and their officers, directors and employees shall not be responsible or liable for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses, or opinions within the report.
Crypto and/or digital currencies involve substantial risk, are speculative in nature and may not perform as expected. Many digital currency platforms are not subject to regulatory supervision, unlike regulated exchanges. Some platforms may commingle customer assets in shared accounts and provide inadequate custody, which may affect whether or how investors can withdraw their currency and/or subject them to money laundering. Digital currencies may be vulnerable to hacks and cyber fraud as well as significant volatility and price swings.
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