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Read expert analysis on what could drive XRP to new highs here.
Bitcoin Slides as Trump Holds Firm on Tariffs
Despite the increasing SEC activity, bitcoin (BTC) also hit the reverse on February 24. Market risk sentiment waned after US President Trump declared tariffs on Canada and Mexico will be effective March 4. He also suggested that reciprocal tariffs will go ahead.
BTC and the broader crypto market have remained highly sensitive to US tariff developments. Higher tariffs could drive inflationary pressures, forcing the Fed to maintain a higher-for-longer rate path. A more hawkish Fed rate path would weigh on risk assets, including BTC.
Did South Dakota Sink Hope for a US Strategic BTC Reserve?
On February 24, South Dakota’s House Commerce and Energy Committee ended the chances of state-level Strategic BTC Reserve (SBR). Monday’s vote came after the State of Montana rejected legislation to allow state investments into precious metals and digital assets.
The decision casts doubt on broader efforts to establish Bitcoin as a strategic asset at the national level. Earlier speculation about a US SBR contributed to BTC’s rally, pushing it to a January 20 record high of $109,312.
However, recent setbacks, including tariffs, Fed hawkishness, and BTC-spot ETF outflows, have weighed on sentiment, dragging BTC toward $90k. On February 24, the US BTC-spot ETF market extended its outflow streak to five sessions.
Bitcoin Price Outlook
On February 24, BTC slid by 4.64%, following Sunday’s 0.41% drop to close at $91,622. Bitcoin’s struggle continues—17 straight sessions below the critical $100k mark.
Key BTC Price Scenarios:
- Bearish: Escalating tariff risks, stronger US economic data, a hawkish Fed stance, and resistance to a US Strategic Bitcoin Reserve (SBR) could send BTC below $90,000.
- Bullish: A reversal in trade tensions, progress toward a Bitcoin reserve, and dovish Fed signals could push BTC toward its all-time high of $109,312.
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