After Bitcoin’s drop below €90,000 due to Trump’s tariffs early in the week, the crypto market saw less dramatic moves. Bitcoin remained between €92,000 and €96,000, while the Fear & Greed Index stayed at an average of 44, indicating continued fear.
Ethereum experienced record inflows into accumulation wallets, MicroStrategy, known for its Bitcoin investments, rebranded to “Strategy” and added Bitcoin to its logo. Meanwhile, the UAE entered into a partnership with Shiba Inu, signaling a shift toward broader blockchain adoption beyond just cryptocurrencies.
Let’s break down the details in this week’s crypto news update.
Bitcoin: Optimistic Predictions for 2025 Despite Trade War Fears
The past week started rough for Bitcoin (BTC), with a drop below €90,000 that triggered $2.1 billion in liquidations. This decline was fueled by fears that Trump’s trade war could prematurely end the ongoing bull market (a bull market refers to a period of rising prices), a topic we covered in last week’s news.
However, Bitcoin quickly recovered after Trump halted tariffs on Mexico and Canada for 30 days. He has not ruled out reinstating them, but for now, the pause restored some market confidence. Bitcoin’s price then remained stable between €92,000 and €96,000 throughout the week.
Today, Bitcoin dipped slightly again after Trump announced 25% tariffs on all imported steel and aluminum. He justified the decision by stating that if other countries impose heavy tariffs or taxes on U.S. imports, the U.S. will respond by imposing similar tariffs on imported goods from those nations. Despite the dip, Bitcoin quickly rebounded.
The Fear & Greed Index, which measures investor sentiment in the crypto market (learn more here), remained in the fear zone last week, averaging 44 out of 100. Bitcoin appears to be stuck within trendlines, with the €100,000 level remaining a key psychological milestone.
Long-term trends remain optimistic, and key industry figures are still confident that Bitcoin will reach between €150,000 and €200,000 by the end of the year, with a peak expected around September or October.
MicroStrategy Rebrands to Strategy
On February 5th, MicroStrategy, a major institutional investor in Bitcoin, officially rebranded itself to “Strategy.” The company also updated its logo to include the Bitcoin symbol and adopted a Bitcoin-themed color scheme to better reflect its mission and core operations.
MicroStrategy CEO Phong Le stated during the rebranding announcement:
“Strategy is innovating in the two most transformative technologies of the 21st century — Bitcoin and artificial intelligence. Our new name powerfully and simply conveys the universal and global appeal of our company.”
Is Ethereum (ETH) Set for a Rally?
On February 7th, Ethereum (ETH) saw a record surge in daily inflows into accumulation wallets. This suggests growing confidence in Ethereum’s long-term price trajectory, despite its recent underperformance compared to other cryptocurrencies.
What are accumulation wallets?
These are wallets that continuously receive ETH but do not make outgoing transactions. They typically belong to long-term investors, institutional players, or entities strategically accumulating Ethereum rather than actively trading it.
Such large inflows are considered a strong signal of confidence in Ethereum’s future. Historically, similar accumulation surges have preceded major price rallies—with Ethereum doubling in price within six weeks after similar patterns.
This trend suggests that Ethereum could be preparing for a new bull run in the coming months.
UAE Partners with Shiba Inu
The United Arab Emirates (UAE) government has formed a strategic partnership with the Shiba Inu (SHIB) cryptocurrency project to boost Web3 adoption in the country. This marks a major milestone, as it is the first significant collaboration between a UAE government entity and a crypto project.
According to the announcement, the UAE’s Ministry of Energy and Infrastructure (MoEI) will work with Shiba Inu to integrate Web3 solutions into key sectors, including energy and infrastructure.
As part of the deal, MoEI and Shiba Inu signed a memorandum of understanding (MoU) that will allow MoEI to use the Shiba Inu platform to promote and implement Web3 solutions.
The agreement highlights the growing role of cryptocurrencies and blockchain technology in shaping the future of industries beyond just digital assets.
When investing in crypto, staying informed is key. Keep up with our weekly crypto news every Monday, and don’t forget to check last week’s updates to stay ahead of market trends!
