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.
$2.24 billion liquidated on Feb 3 and then another $1.47B on the 9th. two separate nine-figure rekt events in one week and btc still held $95k. the support is real
trading volume dropping from $60B to $45B is the real signal here. nobody wants to catch a falling knife when tariff headlines can drop at any minute
Gold hitting $2,860 while BTC dips 6% is interesting. people always say btc is digital gold but the correlation breaks exactly when you want it to hold
five states introducing reserve bills at the same time as a tariff panic tells you everything about where this is going long term