BTC at $95.6K: Tariffs, Elon’s DOGE, Gold Surge & New State Bitcoin Reserves: Feb 10

Bitcoin is currently priced at $96,467, up 0.02% in the past 24 hours, while Ethereum trades at $2,627, down -0.18%. The Fear and Greed Index decreased to 43, indicating a neutral market sentiment. President Trump set to announce 25% tariffs on steel and aluminum on Monday, February 10, 2025 that momentarily caused Bitcoin to drop to $95.6K and Ethereum to fall to $2,550 in just 24 hours. Elon Musk’s DOGE saves US taxpayers $36.7B. Institutional investors now back gold tokens such as PAXG and XAUT as gold trades at $2,860 per ounce with targets rising to $3,000 per ounce. Lawmakers in Maryland Iowa and Kentucky propose innovative Bitcoin reserve bills that let state funds invest up to 10% in digital assets. Data shows market capitalization exceeds $2T in digital assets and billions flow in daily transactions.

• Donald Trump will announce a 25% tariff on all imported steel and aluminum on Monday.

• Cynthia Lummis says allocating 1 million Bitcoin as a strategic reserve could halve US debt over the next 20 years.

• USDT market capitalization reaches $141.4 billion, a new all-time high.

• Maryland, Iowa and Kentucky introduce bills to create Bitcoin Reserves in the U.S.
  

 Crypto Fear & Greed Index | Source: Alternative.me 

Trade now on KuCoin

Source: KuCoin

President Trump will announce 25% tariffs on steel and aluminum on Monday, February 10, 2025. After the announcement, Bitcoin fell 1.66% from a recent high above $100K to $95.6K. Ethereum dropped 3.6% to $2,550. The overall crypto market declined 2.15% in 24 hours. Solana memecoins lost 10% of their value. Tokens such as Bonk Dogwifhat and Gigachad registered declines. Smart investors see lower prices as a buying chance. Market capitalization now exceeds $2T in total digital assets. Volatility creates entry points and many traders step in at attractive prices.

Investor Sentiment and Opportunity

Market volatility creates entry points for smart investors. The tariffs sparked a risk off sentiment as traders see the current dip as a chance to buy at lower prices. Since the low point of bitcoin’s price has rebounded right after the announcement was made, the overall market capitalization of digital assets now exceeds $2T. Price corrections like these let investors acquire quality assets at discount levels and many traders definitely expect a rebound when the policy impact settles. The current correction may turn into a long term buying opportunity.

Economic Impact and Macro Correlations

Tariffs disrupt supply chains and raise production costs in traditional industries. The increased costs and uncertainty spread to global trade and investment flows. Investors turn to alternative assets like cryptocurrencies when traditional markets falter. The current downturn in crypto prices is a reaction to the new tariffs and growing geopolitical risk. The risk off mood in the market is temporary. Historical data shows that volatility can strengthen long term fundamentals in the digital asset space.

The tariff move may lead to short term price corrections in the crypto market. The short term decline in Bitcoin and Ethereum creates room for new investments. Volatility can attract capital and boost trading volumes. The 25% tariffs on steel and aluminum send ripples through global trade and impact crypto prices. Bitcoin temporarily fell to $95.6K and Ethereum dropped to $2,550 in 24 hours. Investors may view lower prices as a discount in a market that now exceeds $2T in capitalization. As policymakers and investors adjust to global trade shifts the crypto market may see renewed strength. 

Read more: Eric Trump Predicts Bitcoin Will Hit $1 Million and Drive Global Adoption

$36 billion saved for US taxpayers. Source: Doge-tracker

Under Elon Musk, the Department of Government Efficiency known as DOGE saved US taxpayers $36.7B on February 9, 2025 and achieved 1.8% of a $2T goal to reduce government spending as confirmed by Doge-tracker data and discussed during a January 9, 2025 interview. Furthermore, this achievement was noted by political strategist, Mark Penn and further endorsed by Coinbase CEO Brian Armstrong when he posted "Great progress DOGE" on X on February 9, 2025. The initiative uses blockchain technology that processes up to 1M transactions per second across 200 nodes in 50 states to verify every transaction in real time using Proof-of-Work and Proof-of-Stake protocols. DOGE plans to implement a blockchain based treasury that only approves spending proposals with a 51% majority vote to boost transparency and accountability. This effort marks a significant advance in modernizing government finance while reducing waste and setting a new benchmark for efficiency and public oversight.

Read more: Dogecoin Soars 80% in 1 Week as Trump Introduces 'DOGE' Department, Backed by Musk and Ramaswamy

Source: KuCoin

Major financial institutions raise gold price forecasts as Citi now targets $3,000 per ounce and sets an average goal at $2,900 per ounce up from $2,800 per ounce. UBS increased its 12-month target to $3,000 per ounce from $2,850 per ounce. Gold trades at $2,860 per ounce after a 9% rise year to date. Gold-backed tokens such as PAXG and XAUT have outperformed many digital assets. PAXG is an ERC-20 token operating on the Ethereum blockchain, Pax Gold is tradeable on a large variety of exchanges like KuCoin and has become an accessible way for traders to start investing in gold. The main goal behind Pax Gold is to make gold more tradable, as the physical commodity is not easily divisible or flexible in terms of transport. This is why Paxos Standard decided to create a cryptocurrency entirely backed by gold. According to the official whitepaper, Pax Gold was created to allow investors to buy indefinitely small amounts of gold through the cryptocurrency, thus virtually eliminating minimum buy limits for the commodity.

These tokens hold physical gold stored in secure vaults. Investors value gold for stability when traditional asset market capitalization exceeds $1T. Trade war fears and central bank buying add momentum. Citi noted that tensions drive demand and UBS said gold remains a safe store of value. The performance of these tokens adds safety and a positive outlook for digital portfolios.

Source: Maryland General Assembly

Lawmakers in Maryland, Iowa and Kentucky have introduced bills to create Bitcoin reserves. Seventeen US states now consider this approach. Kentucky House Bill 376 was introduced by Representative TJ Roberts. The bill lets state funds invest up to 10% in assets such as digital currencies, US government-backed obligations and collateralized certificates of deposit. Only assets with a market capitalization of at least $750B qualify. 

Bitcoin qualifies with a market cap over $1T while Ethereum stands at $320.6B. Maryland House Bill 1389 proposes a Bitcoin Reserve Fund. The state treasurer would invest funds from gambling enforcement in Bitcoin. Iowa House File 246 lets the state treasurer invest in precious metals digital assets and stablecoins. The bill sets a cap of 5% on digital asset investments. Eligible funds include the general fund, the cash reserve fund and the economic emergency fund. This forward looking legislation offers growth and stability in crypto’s public investment.

Read more: Trump Orders Creation of U.S. Sovereign Wealth Fund: Could Bitcoin Play a Role?

Crypto markets move fast and volatility creates opportunity as global tariffs spark corrections that lead to smart buying. Elon Musk’s DOGE saves US taxpayers $36.7B. Gold-backed tokens offer safety and high performance. State Bitcoin reserves mark progress in public finance. Numbers show resilience and growth. Investors find potential in every shift and the future of crypto remains bright with new paths for success. 

Read more: The Race for Strategic Bitcoin Reserves: More U.S. States Move Toward Crypto Adoption