- Eric Trump’s tweet boosts Bitcoin, highlighting its resilience amid market volatility and Ethereum’s struggles.
- Long-term holders maintain stability in Bitcoin, suggesting a cyclical market with potential for upward movement despite short-term fluctuations.
Bitcoin (BTC) experienced a surge on Thursday, rising above $98,000. This movement followed a tweet from Eric Trump, son of U.S. President Donald Trump, who suggested that it was a good time for his family’s backed crypto platform, World Liberty Financial, to make an investment in Bitcoin.
Feels like a great time to enter #BTC!
@worldlibertyfi
— Eric Trump (@EricTrump) February 6, 2025
At the time of the price surge, Bitcoin’s market capitalization was valued at $1.94 trillion, with a trading volume of $44.58 billion over the past 24 hours. The cryptocurrency’s circulating supply stood at 19.82 million BTC, with a maximum cap of 21 million BTC, which continues to drive its value due to its scarcity. Although trading volumes declined by 32.51%, Bitcoin displayed resilience, fluctuating between $97.8K and $98.1K during the period.
Despite this upward movement, Bitcoin has exhibited short-term volatility, with periods of consolidation and sharp upward movements followed by minor corrections. These price patterns point towards a market that remains relatively strong, fueled by continued institutional and retail interest.
Ethereum’s Struggles Amid Market Turmoil
The timing of Eric Trump’s Bitcoin endorsement follows Ethereum’s (ETH) recent struggles. Earlier in the week, as noted by CNF, Ethereum experienced a sell-off triggered by President Trump’s tariff announcement, which led to broader market volatility.
By February 3, Ethereum had dropped 37% from its recent high on January 31, marking one of its sharpest declines in recent history. While Ethereum’s downfall added to the uncertainty in the crypto market, Bitcoin’s price continued to show strength, further showing the contrast in performance between the two leading tokens.
Adding to this sentiment, David Sacks, the Trump administration’s advisor on AI and cryptocurrency, also contributed to market discussions when he revealed that the administration is exploring the possibility of building a strategic Bitcoin reserve. However, according to the CNF report, though his statement was met with initial optimism, some investors were disappointed by the lack of timely action.
Investor Behavior and Long-Term Holding Trends
On-chain data shows that while retail investor interest in Bitcoin remains subdued, long-term holders continue to dominate the market. The percentage of Bitcoin held by long-term holders remains largely stable, with occasional spikes correlating with price movements.
Source: CryptoQuant
As the price increases, some of these long-term holders may capitalize on the gains, suggesting a cyclical pattern in the market. Despite the ups and downs, long-term holders seem to maintain control, adding a layer of stability to Bitcoin’s price action.
Additionally, Bitcoin’s technical indicators suggest a period of consolidation, with the MACD showing bearish divergence and the RSI hovering at 52.22, indicating a neutral market. These indicators suggest that while selling pressure is present, the market is not yet oversold, leaving room for potential upward movement.
Source: TradingView
