02/03 update below. This post was originally published on February 2Bitcoin and crypto prices have stalled after soaring higher following Donald Trump’s U.S. presidential victory—with fears suddenly emerging the $4 trillion crypto bubble could be about to pop.
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The bitcoin price has surged to almost $110,000 per bitcoin, helped by Elon Musk’s leaked plans for crypto in the White House.
Now, as one legendary bitcoin trader warns of a looming “financial crisis,” Federal Reserve chair Jerome Powell has flung the door open for Wall Street to further adopt bitcoin and crypto.
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“Banks are perfectly able to serve crypto customers as long as they can understand and service the risks,” Powell said at a press conference this week after the Fed paused its interest rate cutting cycle.
Wall Street banks “have to be pretty sure” their bitcoin and crypto activities are “safe and sound,” Powell added.
02/03 update: Crypto prices have taken a huge step lower, wiping around $300 billion from the combined market that has been hard hit by the rapidly escalating trade war sparked by U.S. president Donald Trump’s volley of tariffs on goods entering the U.S. from China, Canada and Mexico.
The tariffs, due to come into effect Tuesday morning, have also hit global stock markets, with investors balking at the prospect of tighter trading conditions.
“A tidal wave of fear, uncertainty and doubt (FUD) has been unleashed across the cryptocurrency market after U.S. president Donald Trump’s Friday tariff announcement,” Petr Kozyakov, chief executive crypto payment platform Mercuryo, said in emailed comments.
“The prospect of prolonged higher interest rates has rattled all global markets. While bitcoin has dropped below the $100,000 mark the King of Crypto is once again proving itself to be in a class of its own in marked contrast to altcoins bleeding dark red across the board.”
Bitcoin plummeted overnight to just over $91,000, down almost 10% at its lowest, before rebounding to around $95,000. Other major cryptocurrencies have seen far steeper declines, with ethereum down around 20% before recovering slightly and Ripple’s XRP and ethereum rival cardano trading around similar levels.
Solana, ethereum’s biggest rival, has fared better, off by just 6% and exacerbating fears among ethereum holders that it could seize the altcoin crown.
However, crypto traders have cheered analysis from Bitwise’s investment guru Jeff Park, posted to X, who has outlined his thesis on why the coming trade war could be good for bitcoin.
“Tariffs might be just a temporary tool, but the permanent conclusion is that bitcoin is not only going higher—but faster,” Park wrote, adding: “While both s