Bitcoin holds its ground amid macroeconomic headwinds

Hola folks!

Welcome back to our weekly crypto update. The past week has been volatile for the global crypto market, which reacted to new trade tariffs proposed by US President Donald Trump. While the blue-chip cryptos took a breather, some newly launched meme coins set the market on fire. 

On the macroeconomic front, US inflation data and the Fed’s comments are expected this week. Changes in inflation data could impact the global crypto market. Read on to learn more.

Bitcoin spent the past week consolidating after a sharp drop from $100,185 to a low of $95,662, with strong support holding around $95,500–$96,000. On the upside, resistance is firming up at $98,000–$99,500, and a decisive break above $98,500 could propel BTC back toward the six-figure mark. However, a failure to hold support may invite a retest of $92,000. 

A key driver of market volatility came from an unexpected source: US President Donald Trump’s new tariff threats on aluminum and steel. The announcement sent ripples through global markets, leading to a temporary dip in crypto before a quick rebound. This event highlighted Bitcoin’s increasing correlation with macroeconomic events.

Meanwhile, Bitcoin maximalist Michael Saylor is gearing up for another big BTC buy, following a brief pause after 12 consecutive weeks of accumulation. On another note, Arthur Hayes threw cold water on the idea of a US Bitcoin reserve, warning that it could be a ticking time bomb, vulnerable to political manipulation and chaotic market interventions.

The meme coin mania is back, and several corporate figures, crypto influencers, and even an entire country are joining the fray. 

BNB Chain’s TST token—initially created as a mere tutorial—skyrocketed to a $300 million market cap after a nod from Binance’s founder, Changpeng Zhao. 

Meanwhile, Barstool Sports’ David Portnoy made headlines with JAILSTOOL, which hit over $200 million before settling at $78 million, sparking accusations of insider plays. 

The Central African Republic launched its national meme coin, CAR, which it describes as an innovative approach to economic development and global recognition. Whether genius or gimmick, the meme coin spectacle refuses to slow down.

Weekly price movement: 

• BTC $97,849 ⏫ 2.01%

• TAO $389 ⏫ 19.04%

• BNB $605 ⏫ 5.09% 

• SOL $205 ⏫ 4.49%

(All data here as of 2.45 p.m., 10 February 2025)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• US President Donald Trump signed an executive order on Feb. 3, charging the Treasury and Commerce Departments with creating a sovereign wealth fund. Though Bitcoin was not mentioned at the signing, the fund could conceivably house the government’s Bitcoin holdings. Treasury Secretary Scott Bessent said he expected the sovereign wealth fund to be created in the next 12 months. Read more here.

• Ondo Finance, a leading tokenized real-world asset (RWA) issuer, has unveiled a new offering to accelerate the onboarding of traditional assets to blockchain technology. Ondo launched Ondo Global Markets (Ondo GM), a platform dedicated to providing on-chain access to stocks, bonds, and exchange-traded funds (ETFs). Read more here.

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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