The Trump administration announced 25% tariffs on Canadian and Mexican imports, and an additional 10% on Chinese imports. Bitcoin briefly retreated below $92,000 before recovering to $97,000 — demonstrating relative resilience in the face of the macro shock.
The initial impact of announcements
The February 1 announcement triggered an 8% Bitcoin decline within hours — from $105,000 to $97,000. Equity markets also fell, with the S&P 500 losing 1.5% in session. The immediate correlation between Bitcoin and traditional risk assets thus manifested.
The rapid recovery
Within 72 hours of the announcement, Bitcoin recovered most of its decline. Several reasons: some tariffs were suspended after negotiations with Canada and Mexico, and the market interpreted these announcements as negotiating tools rather than permanent measures.
ETF flows remain positive
Farside Investors records slightly positive net flows for the week despite volatility — a signal that institutional investors view dips as buying opportunities.
What this data does not tell us
Trump's trade policy is unpredictable by nature. Similar announcements — or more severe ones — could recur, creating additional volatility episodes throughout 2025.