Tariffs Trigger Volatility—Bitcoin Bounces Back Stronger
Another tariff hits, Bitcoin drops but rebounds even stronger—could this be a sign of growing immunity to tariff news?
This morning, news broke that additional tariffs are set to take effect tomorrow—25% tariffs on steel and aluminium. This comes just two days after Trump’s previous announcement of reciprocal tariffs, set to begin this week. The latest tariff news has triggered a bearish reaction in the crypto market, and I expect traditional markets to follow suit once trading begins.
On the announcement, Bitcoin fell 1.72% within an hour, hitting a low of $94.6K. However, the market has already rebounded faster than it dropped, with Bitcoin not only recovering but now trading above its pre-announcement level at $97k. This is not just a positive sign—it could be an indication of how future tariff-related news will be priced in.
It's clear that markets initially react bearishly to tariff news, often triggering immediate sell-offs as investors rotate into risk-off assets. The first tariff announcement sent shockwaves through the market, causing Bitcoin to drop nearly 10% before staging a major reversal when the tariffs were halted. The second announcement saw a 4% drop, and this latest news only triggered a 1.72% dip, which was fully recovered in under two hours. As these updates become more frequent, market reactions are maturing—becoming less emotional and more efficiently priced in, potentially signaling that Bitcoin is developing resilience to these tariff announcements.
Going forward, we can expect any new tariff announcements to have a short-term bearish impact, while any pause or removal of tariffs will likely be extremely bullish. The ongoing trade and tariff wars will continue to generate short-term volatility, but they will also create attractive buying opportunities for long-term investors.
Upcoming Key events and its impact on Bitcoin…
Wednesday February 12: Jerome Powell Speaks
Arguably the most influential figure in the markets aside from Donald Trump. His tone and comments will drive market sentiment.
Thursday February 13: CPI data
One of the most crucial inflation indicators. If CPI shows inflation is under control, risk-on assets could rally. However, a higher-than-expected reading would likely have a bearish impact on markets.
Tuesday February 18: Reserve Bank Australia Interest rate decision
Markets anticipate the RBA to cut interest rates, though this is unlikely to impact crypto markets significantly.
Tuesday February 18: FTX Repayments begin
FTX is set to begin repaying an estimated $6.5B–$7B, with funds reaching sub-$50K claim holders first.
Stormrake Spotlight: Ondo Finance (ONDO) ($1.34)
Ondo Finance returns to the Stormrake Spotlight as one of the best-backed crypto assets by traditional institutions. It is a leading Real-World Asset (RWA) project and has secured major partnerships, including BlackRock, the world’s largest asset manager. Ondo has also partnered with Ripple to launch tokenised assets on the XRP Ledger. Additionally, World Liberty Financial has begun accumulating ONDO.
Despite broader market weakness, Ondo has demonstrated remarkable strength, a highly bullish sign. Strength during periods of market uncertainty often indicates that a project will outperform when the market turns bullish.
Currently, ONDO is down 38% from its December all-time high (ATH), trading at $1.34, where clear support is forming. This level presents a compelling accumulation opportunity, especially given that some of the most influential players in the space are backing the asset.
BTC/USD Key Levels and Price Action:
Bitcoin has recovered strongly since the tariff announcement and is now up 2.5% from the low. As expected, BTC bounced off the bottom of its range. If Bitcoin can sustain this momentum and break above key moving averages, it will flip market sentiment back to the bulls and could trigger a retest of $100K.
BTC Total ETF Flows for 9 Feb: $ (data not available)
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
Ethereum is mirroring Bitcoin’s price action, bouncing off the bottom of its range. ETH is on the verge of breaking above the 21 and 55 EMAs, a move that could ignite a rally towards the top of the range and shift momentum back to the bulls.
ETH Total ETF Flows for 9 Feb: $ (data not available)
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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