Blockware Intelligence Newsletter: Week 164

Bitcoin on-chain analysis, mining analysis, macro analysis; overview of 2/1/25 - 2/7/25

The primary metric we’ve been watching so far in 2025 is the US Dollar Strength Index ($DXY). The events of this past week painted a clear picture as to the effect of relative dollar strength on the market. Late Sunday night, while Wall Street was closed, Trump announced a 25% tariff on Canadian and Mexican imports. This quickly prompted a rush to dollars, with the $DXY coming close to a re-test of its multi-year high of 110.

Unlike many of the talking heads in financial media, I’m not going to pretend to be an expert on the economic and geopolitical implications of tariffs. That’s not my area of expertise. What I can do is analyze the effect this has had on financial markets – and primarily, Bitcoin.

Firstly, why did this cause a drop in the price of Bitcoin?…