Crypto Market Reacts to Trump’s 25% Tariff Amid Economic Uncertainty
The cryptocurrency market experienced significant turbulence after former U.S. President Donald Trump announced a 25% tariff on steel and aluminum imports, sparking fears of a potential trade war. Speaking from Air Force One, Trump confirmed that the tariffs would take effect on Monday, with reciprocal tariffs expected to be announced midweek.
He stated, “The United States will not put up with one-sided trade agreements any longer. If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way.”
This announcement initially sent shockwaves through global financial markets, briefly affecting both stock and crypto prices. However, the crypto market quickly showed signs of resilience and recovery.
Bitcoin and Ethereum React to Tariff News
Following Trump’s announcement:
- Bitcoin (BTC) dropped to $94,000 before rebounding above $97,000.
- Ethereum (ETH) saw a decline to $2,537 but quickly recovered to $2,644.
Data from CoinMarketCap indicated that the overall crypto market capitalization dipped from $3.15 trillion to $3.10 trillion before bouncing back to $3.19 trillion. This volatility highlights how economic uncertainty surrounding tariffs can impact investor sentiment toward digital assets.
Market Shows Resilience Amid Economic Uncertainty
Despite the slight sell-off, market analysts remain positive that Bitcoin will hold up above $96,000. This is regarded as a crucial support level. Avinash Shekhar, Co-Founder & CEO of Pi42, said:
- “The crypto market is showing resilience despite short-term volatility brought about by changes in the economy. While uncertainty over tariffs had briefly pushed Bitcoin and Ethereum downwards, investor confidence has held at key support levels.”
Vikram Subburaj, CEO of Giottus, echoed the same sentiment:
- “The cryptocurrency remains at the range of $96,000, and it may even bounce from it. Concerns over US tariffs and delays in quantitative easing brought dismal crypto performance over the past days.”
Meanwhile, stablecoin trading volume rocketed by 41.26% to $95.61 billion, signifying that many traders took refuge in more stable assets when the market dipped.
Bitcoin Resilient Amid Trump Economic Policies
As discussions about Trump’s tariffs unfold, crypto investors are closely monitoring potential ripple effects on financial markets. Many analysts suggest that any further tariff escalations could introduce additional volatility. However, Bitcoin’s swift recovery suggests that investors still view it as a hedge against economic instability.
Just days ago, news of a temporary pause on Trump’s tariffs provided relief to crypto miners. With Trump expected to make further statements regarding cryptocurrency—possibly during his upcoming Super Bowl media engagements—traders are eagerly awaiting insights into his stance on digital assets.
Currently:
- Bitcoin’s market capitalization has climbed to $1.93 trillion, reflecting a 0.70% increase.
- BTC’s 24-hour trading volume surged by 74.44% to $37.33 billion, signaling continued investor confidence despite tariff concerns.
As more details on Trump’s trade policies emerge, traders will closely monitor their impact on both global markets and digital assets in the coming days.
Also Check:
- Zoo Airdrop Listing Date & Tokenomics Update: Everything You Need to Know!
- $TST Token Soars 4700% Following Binance Founder CZ’s Tweet
- Central African Republic’s Crypto $CAR: Scam or Innovation?
- PAWS Listing Date Update: $85K Giveaway for the Community
- Blum TGE Date & Listing Date: What to Await in Q1 2025
- TapSwap Listing Date: Deposit $TAPS on Bitget with No Gas Fee!