Bitcoin (BTC) is up 0.5% this week to $105,122, recovering from a sharp 6.4% drop to $97,696 on Monday. The decline was triggered by Donald Trump’s tariff threat against Colombia. Though, BTC pulled through it surviving during panic over China’s DeepSeek R1 chatbot and a hawkish Federal Reserve (Fed) meeting on Wednesday.
However, there were positive developments as well. Fed Chair Jerome Powell acknowledged that banks can serve clients holding crypto assets, provided risks are properly managed. He also stressed the need for clear crypto regulations. Trump continued pressuring the Fed, criticising its indecision facilitating bullish trends for crypto markets. On this news, Bitcoin gained 3.0%.
Despite this rebound, Bitcoin remains at a crossroads. A potential correction to $80,000–90,000 could take place before the next major rally in April–May. Alternatively, BTC may continue its uptrend without a significant pullback. February will be key in determining the path.