Bitcoin Surges Past $97K Despite Tariffs, Institutional Demand Lags

Bitcoin's price surged above $97,000 on Feb. 10, despite initial concerns over China's tariffs on US energy imports. The cryptocurrency briefly dipped below $95,000 on Feb. 9 following the reports but quickly recovered after US President Donald Trump responded with tariffs on steel and aluminum imports.

However, institutional demand for Bitcoin has remained relatively unchanged in recent days. Key indicators, such as spot exchange-traded fund (ETF) flows and Bitcoin derivatives metrics, suggest limited buying interest from institutional investors. The 25% delta skew for Bitcoin options, a measure of market sentiment, currently stands at 2%, a neutral level but weaker than the -5% observed on Feb. 1. Additionally, demand for leveraged long positions in Bitcoin futures is near its lowest level in four months.

The current 8% annualized premium on Bitcoin futures is significantly below the 11% recorded on Feb. 1 and remains under the 10% bullish threshold. This suggests that institutional traders' appetite for leveraged Bitcoin exposure is well below historical averages. Despite modest inflows into spot Bitcoin ETFs in the US, institutional demand for the cryptocurrency remains relatively low at $97,000.

The primary concern driving the relatively low institutional demand for Bitcoin appears to stem from the broader macroeconomic environment rather than factors specific to cryptocurrencies. Yields on the US 10-year Treasury have declined to 4.50% from 4.78% a month earlier, signaling investor risk aversion as demand for safer assets rises. US President Trump's aggressive trade policy has also weighed on risk-on markets, including Bitcoin, as investors are increasingly concerned that escalating tariffs could slow global economic growth.

Adding to risk aversion on Feb. 10, Moody's issued a warning that the World Bank could lose its AAA credit rating if major multilateral lenders reduce support following the US government's decision to reassess its funding for development banks. Meanwhile, McDonald's reported a 1.4% year-over-year decline in US sales for the fourth quarter, raising concerns about economic resilience and driving investors toward cash positions, which strengthened the US dollar against other major currencies.

While Bitcoin struggled to break above $98,000 on Feb. 10, the cryptocurrency's price rally beyond