Americas Crypto Daybook: Bitcoin Remains Unfazed by Looming Tariff Escalation

By Omkar Godbole (All times ET unless specified otherwise) The escalating tariff rhetoric from President Donald Trump has failed to impact Bitcoin, which remains stable alongside foreign exchange risk indicators like AUD/JPY. Trump is set to impose 25% tariffs on steel and aluminum imports, in addition to existing metal duties, later today. This market stance contrasts with the risk aversion observed last week when Trump initially announced the tariffs. It is possible that market participants believe Trump is using aggressive tactics to negotiate trade deals rather than implementing sustained tariffs, following his decision to suspend tariffs on Mexico and Canada for 30 days. According to QCP Capital, the current market stability may embolden Trump to take a tougher stance. "A feedback loop is emerging, where President Trump, highly sensitive to market reactions, is facing a market that is increasingly calling his bluff. This could further embolden him, adding another layer of volatility," QCP stated in a Telegram broadcast. The situation will be interesting to watch. A social media post is circulating, showing record open short positions in CME-listed cash-settled ether futures. However, these shorts are likely components of carry trades, where investors hold long positions in ETFs while shorting CME futures, rather than outright bearish bets. Notably, ETH ETF inflows surged last week, and some of the shorts may be investors hedging against long altcoin bets due to concerns over the number of coins and impending large unlocks. Over the weekend, Base member Kabir.Base.eth refuted claims that the sequencer Coinbase had been selling ETH earned as fees, adding transparency to its operations. In another notable development, Archange Touadéra, president of the Central African Republic, reportedly issued a new memecoin, which saw a trader turn $5,000 into $12 million in less than three hours, achieving a remarkable return of 2,450x, according to LookOnChain data. Meanwhile, LTC continues to shine as the top-performing cryptocurrency of the past 24 hours, up 9%. On the macroeconomic front, the surge in U.S. consumer inflation expectations raises concerns about the likelihood of a prolonged pause in the Federal Reserve's rate cuts. The U.S. Consumer Price Index (CPI) is due for release on Wednesday. Stay alert! What to Watch Token Events Conferences: CoinDesk's Consensus will take place in Hong Kong on February 18-20 and in Toronto on May 14-16. Use code DAYBOOK to save 15% on passes. Token Talk By Shaurya Malwa Derivatives Positioning Market Movements: Bitcoin Stats: Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether