Bitcoin held its ground near $96,500 on February 9, 2025, after a turbulent weekend that saw the world’s largest cryptocurrency swing between panic selling and cautious accumulation. The price action came amid renewed trade war fears after President Donald Trump announced plans to impose 25% tariffs on all imported steel and aluminum, sending shockwaves through both traditional and digital asset markets.
TL;DR
- Bitcoin trades at $96,500 after dipping to $95,600 following Trump’s tariff announcement
- $1.47 billion liquidated across crypto markets in 24 hours — the largest single-day figure this quarter
- Crypto Fear & Greed Index drops to 43, signaling neutral-to-fearful sentiment
- Five U.S. states introduce Bitcoin reserve bills allowing up to 10% allocation
- Gold hits $2,860 per ounce as investors rotate into safe haven assets
Trump Tariffs Rattle Risk Assets
President Trump’s announcement of sweeping 25% tariffs on steel and aluminum imports, set to be formalized on February 10, triggered an immediate risk-off reaction across financial markets. Bitcoin fell from its weekly high near $101,989 to an intraday low of $95,600 — a decline of roughly 6% — before finding support and recovering to the $96,500 level by Sunday evening.
The tariff announcement compounded an already volatile week for crypto. On February 3, Bitcoin had plunged to $91,231 — its lowest point in weeks — as initial trade war fears triggered the largest single-day liquidation event in crypto history, with $2.24 billion in leveraged positions wiped out. The market staged a sharp recovery to $102,500 on February 4 after the U.S., Canada, and Mexico agreed to postpone tariff implementation for 30 days, but the relief proved short-lived.
Trading volume across major exchanges fell to $45 billion from $60 billion in January, reflecting reduced liquidity and cautious positioning by both retail and institutional traders. The decline in volume suggests that many participants are choosing to sit on the sidelines until the tariff situation becomes clearer.
Kimchi Premium Signals Global Demand Dislocation
One of the more notable signals emerging from the weekend selloff was the so-called kimchi premium — the price difference between Bitcoin on South Korean exchanges and global platforms — which spiked to 9%, its highest level since April 2024. The premium, which averaged 8.24% daily according to CryptoQuant data, typically surges during periods of heightened market stress when selling pressure on Korean exchanges is lower than on global platforms.
The premium’s rise to a 10-month high reflects a broader pattern of global demand dislocation, with South Korea’s strict capital controls preventing arbitrage between domestic and international markets. While the kimchi premium is often interpreted as a bullish signal, its emergence during a selloff suggests it is being driven by macroeconomic uncertainty rather than retail speculation.
State-Level Bitcoin Reserve Bills Gain Momentum
Even as the federal tariff debate rattles short-term sentiment, the legislative landscape for Bitcoin continues to evolve at the state level. Five U.S. states — New Mexico, Iowa, Kentucky, Missouri, and Florida — have introduced bills to create state-controlled Bitcoin reserves. Maryland joined the list over the weekend, with its proposal allowing state funds to invest up to 10% of their reserves in digital assets.
Senator Cynthia Lummis reiterated her call for the federal government to allocate 1 million Bitcoin as a strategic reserve, arguing that such a move could halve U.S. debt over the next 20 years. While the proposal remains speculative, it reflects growing institutional acceptance of Bitcoin as a legitimate treasury asset at both state and federal levels.
Technical Picture Shows Key Support Holding
From a technical standpoint, Bitcoin’s ability to hold the $95,000 support level is encouraging for bulls. The cryptocurrency’s RSI dropped to 45 — firmly in neutral territory — while the MACD showed a bearish crossover, suggesting short-term downside risk remains. Key resistance sits near $100,000, a level Bitcoin has tested multiple times this quarter without sustaining a breakout.
On-chain data from CryptoQuant shows that long-term holders added $883 million worth of ETH on February 7 — the largest single-day accumulation in over a year — suggesting that sophisticated investors are using the dip to build positions despite the uncertain macro backdrop.
Why This Matters
The events of February 9 illustrate a fundamental tension in the Bitcoin market: macroeconomic headwinds from trade policy are creating short-term volatility, while structural adoption — through state reserve bills, ETF inflows, and institutional accumulation — continues to build beneath the surface. The $95,000 level has emerged as a critical battleground, and whether Bitcoin can hold it through the coming week of tariff implementation will likely set the tone for the rest of February. For long-term investors, the combination of fear-driven liquidations and sustained institutional interest presents a classic accumulation opportunity — though the path forward depends heavily on how trade policy unfolds in the days ahead.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions. Past performance is not indicative of future results.
$1.47B liquidated in 24h and BTC holds $96.5k. the leverage is getting washed out but spot buyers keep stepping in
$1.47B liquidated and we still held $96.5k. the spot demand is real, this isnt leverage-driven price action anymore
Jana S. $1.47B liquidated and spot holds. thats the pattern from 2023 that nobody trusts until it repeats. leverage gets washed out and price barely moves
Lieselotte K. spot holding after 1.47B liquidation is the pattern that keeps repeating. leverage gets wiped, price barely budges, and everyone waits for the next dump that doesnt come
five US states introducing BTC reserve bills allowing 10% allocation. state-level adoption is happening faster than anyone predicted
Tan Wei Lin state level BTC reserve bills with 10% allocation caps. if even 3 states actually pass these, thats billions in mandated BTC buying. the tariff noise is temporary
macro_edge three states passing these bills means mandated BTC buying on a timeline. the tariff noise is 24h news cycle but state-level allocation is structural
macro_edge state reserve bills are structural buying pressure but 10% allocation caps will get voted down to 1-2% in practice. no treasury manager is parking that much in BTC voluntarily
tariff_doom_ the 1-2 percent you mentioned is probably accurate. arizona started at 10 and ended at 5. legislators like the headline of a BTC reserve bill but not the actual balance sheet risk
tariff_doom_ 10 percent allocation caps getting voted down to 1-2 percent is exactly what happened to the Arizona bill. policymakers talk big then water it down
10% allocation caps are aggressive for state treasuries. the lobbying effort to get these passed must be enormous
gold at $2,860 and BTC at $96.5K both rising together. the correlation with safe havens is strengthening. BTC is becoming the digital treasury asset the thesis predicted
25% steel tariffs and still no cascade, macro_edge called it early
held 96500 after 1.47b liq, fear greed 43 still looks weak
gold at $2,860 and BTC at $96.5k. both acting as safe havens while equities get hit by tariff uncertainty
gold_flip_ gold at 2860 while btc holds, 5 states pushing reserves
1.47B liquidated in 24h and BTC only dipped to 95.6k before bouncing. that used to be a 20% drop in prior cycles. the market structure is fundamentally different now
five US states introducing Bitcoin reserve bills the same week Trump dropped tariff bombs. the policy divergence between federal trade policy and state level crypto adoption is wild to watch
gold hitting 2860 while BTC held 96500 tells you both assets are responding to the same macro shock differently. BTC absorbed the hit faster despite being the risk asset
five states pushing BTC reserve bills during a tariff war is not coincidence. policymakers are hedging against exactly this kind of macro shock
Cornel P. gold at 2860 and BTC at 96500 both rising at the same time kills the inflation hedge vs risk asset debate. they are both liquidity sponges
1.47B liquidated and BTC barely flinched at 96.5k. in 2022 that same event would have been a 30 percent cascade. spot markets are unrecognizable
Kasper L. 30 percent cascade in 2022 vs barely moving now. the difference is spot ETF holders who are price insensitive. they are not leveraged and they are not selling on leverage washouts
gold at 2860 and BTC at 96500 both rising. the safe haven correlation is the strongest it has ever been and institutions finally see it
1.47B liquidated and BTC held 96.5k. try explaining that to someone who was around for the March 2020 crash. market structure is completely different now
1.47B liquidated and BTC held 96.5k. in 2018 that would have been a 40 percent crash. spot markets are built different now