Bitcoin Drops Below $100,000 After Record $102,412 Close, Analysts Warn of Possible $95,000 Bear Trap

Bitcoin dropped below $100,000 for the first time since Jan. 27, despite closing January at a record high of $102,412. The decline comes after President Donald Trump imposed import tariffs on goods from China, Canada, and Mexico, raising inflation concerns. Some analysts believe the price could fall further to $95,000 before recovering, with market experts warning that this could be a bear trap—a controlled selling event that creates a temporary dip in a long-term uptrend.

Ryan Lee, chief analyst at Bitget Research, pointed to $95,000 as a key support level. He said the direction of Bitcoin in the coming weeks would depend on labor market trends, investor sentiment, and Federal Reserve policy expectations. The U.S. Bureau of Labor Statistics is set to release its labor market report on Feb. 7, which could influence Bitcoin’s price. If the report signals a weakening economy, it could strengthen the case for an interest rate cut by the Federal Reserve. Lower interest rates tend to benefit Bitcoin by making traditional investments less attractive.

Despite the recent dip, Bitcoin ended January with its highest-ever monthly close at $102,412, surpassing its previous record of $96,441 from November 2024. Some analysts argue that the drop is a temporary correction and that Bitcoin’s long-term outlook remains positive. Predictions for the rest of 2025 range from $160,000 to $180,000, driven partly by rising institutional interest. Spot Bitcoin exchange-traded funds (ETFs), which launched in the U.S. on Jan. 11, 2024, have now surpassed $125 billion in total assets.

Market volatility has led to mixed reactions from investors. Some see the current drop as a buying opportunity, while others are cautious, fearing further losses. The uncertainty surrounding economic policies, inflation, and regulatory developments continues to shape market sentiment. Bitcoin’s ability to hold above key support levels in the coming weeks will determine its next move.

With Bitcoin experiencing sharp price swings, investors are watching closely for signs of recovery or further decline. Analysts suggest that upcoming economic data and Federal Reserve decisions will significantly shape Bitcoin’s price in the months ahead. While some expect a rebound, others remain wary of continued volatility.