As geopolitical tensions brew, Donald Trump hinted at new friction centers, spotlighting Canada. Amid these developments, the Federal Reserve is set to announce its interest rate decision. However, given strong employment data, better-than-expected GDP growth, and persistent inflation, there’s anticipation for rates to remain unchanged. So, what’s next for cryptocurrencies?
Will Cryptocurrencies Rise?
Recently, Ki Young Ju of CryptoQuant indicated that recent loss-driven sales mirror 2022 trends, signaling the official start of bear markets based on 30-day data. Following CryptoQuant’s CEO sell signal, Bitcoin dipped to 88,500 but rebounded past $90,000, buoyed by NVIDIA’s recovery. The pace in the cryptocurrency realm is dizzying. Just moments ago, it was revealed that leveraged funds are reducing short positions in Bitcoin futures.
Trump suggested that geopolitical tensions would not settle, implying that tariff discussions will remain topical. He recently posted on his Truth Social account:
“Canada opposes the Golden Dome over Greenland, yet it would protect Canada. Instead, they’ve chosen to deal with China, which will ‘devour’ them in the first year!”
Next week, the interest rate decision and likely on February 20, the Supreme Court’s customs tariff decision will be announced. On February 1, EU-US tariffs were suspended in Davos because Trump had reached an agreement with NATO. As the agenda intensifies, the cryptocurrency domain remains challenging, with investors feeling exhausted. Predicting the next phase is tough, but if history echoes, cryptocurrencies might not plummet as harshly as 2022. Still, seeing a significant reduction is plausible if the Fed delays QE. This aligns with traditionalists’ expectations for early this year.
Bitcoin Whales
The chart below reflects the purchasing momentum of significant institutional investors and reserve companies. After waning in the last quarter of 2025, acquisitions picked up again in January, with Strategy leading the charge.
JA_Maartun noted:
“A $20 Billion BTC Transfer Occurred in One Block
224,248.67 BTC moved in a single block — a rare, massive transaction.
Notable addresses:
- bc1qjasf…a4
- bc1qd4y…zr
It’s likely a UTXO consolidation by Tether/Bitfinex, but rumors suggest a $20 billion increase with a $500 billion valuation.”
There’s also some bad news. GameStop, with great anticipation, started accumulating BTC. Now, GME has transferred all its BTC holdings to Coinbase Prime, perhaps preparing for a sale. They purchased 4,710 BTC in May 2025 for approximately $107.9k (~$504 million). If sold now (~$90.8k), it would mean a loss of around $76 million.
