Bitcoin Dips as Trump Announces 25% Tariffs on Steel and Aluminum
The cryptocurrency market experienced a temporary setback following fresh tariff announcements from former U.S. President Donald Trump. However, a swift recovery is now underway.
On Feb. 9, Trump revealed a 25% tariff on all steel and aluminum imports into the U.S., as reported by the Associated Press. He also proposed reciprocal tariffs on countries imposing high import fees on U.S. goods.
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump stated.
Crypto Market Reaction: A Temporary Dip
The announcement caused a sharp but brief downturn across the crypto market. Bitcoin (BTC) fell to $94,000 before swiftly rebounding past $97,000, according to CoinMarketCap. Ethereum (ETH) also saw a decline, dropping to $2,537 but recovering to $2,645 soon after.
The broader crypto market followed a similar trend, with the total market capitalization slipping from $3.15 trillion to $3.10 trillion before climbing back to $3.13 trillion.
Market Sentiment: Fear Persists
The Crypto Fear & Greed Index, which gauges investor sentiment, remained in the “fear” zone throughout the week. The latest Feb. 10 update marked a slight decline in confidence, with the index scoring 43, down from 46 the previous day.
Trump’s Tariff Strategy and Market Impact
Trump has signaled further tariff plans targeting the EU, superconductors, oil, gas, steel, and copper. Earlier, on Feb. 1, he imposed a 25% tariff on Canada and Mexico and 10% on China, triggering sharp losses in both stock and crypto markets.
Estimates suggest liquidations may have reached between $8 billion and $10 billion, according to Bybit co-founder and CEO Ben Zhou. However, market sentiment improved after the U.S. temporarily paused tariffs on Mexico and Canada for 30 days on Feb. 3. Trump, however, has not ruled out reinstating them after the pause expires.
Looking Ahead: Market Volatility Expected
While crypto markets have shown resilience, continued tariff uncertainty could fuel increased volatility. Traders and investors are closely watching for further policy updates that may impact global markets, including Bitcoin and altcoins.
Stay tuned for real-time updates on crypto price movements, macroeconomic trends, and regulatory developments. 🚀
