Bitcoin Falls as Trump Imposes 25% Steel, Aluminum Tariffs
The cryptocurrency market has faced turbulence as former U.S. President Donald Trump announced a 25% tariff on steel and aluminum imports. This decision, part of an ongoing trade policy shift, triggered a temporary dip in Bitcoin and other digital assets before the market stabilized.
Bitcoin briefly dropped to $94,000 before rebounding above $97,000, showing resilience despite market fears. The total crypto market cap also declined from $3.15 trillion to $3.10 trillion before recovering to $3.13 trillion. Ethereum followed a similar trend, dipping to $2,537 before climbing back to $2,645. Meanwhile, the Crypto Fear & Greed Index remained in the fear zone, reflecting ongoing market uncertainty.
Trump’s Tariff Announcement and Its Impact
On February 9, Trump declared that all imported steel and aluminum entering the U.S. would be subjected to a 25% tariff. Additionally, he emphasized plans to impose reciprocal tariffs on nations that levy high import duties 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, reinforcing his stance on trade policies.
Crypto Market’s Reaction 📉
Following the announcement, the crypto market saw a sudden drop in prices.
Bitcoin (BTC) fell from $97,697 to $94,000, before recovering above $97,000.
Ethereum (ETH) saw a similar dip, declining to $2,537 but later climbing back to $2,645.
The total crypto market cap declined from $3.15 trillion to $3.10 trillion, though it has since rebounded to $3.13 trillion.
Meanwhile, the Crypto Fear & Greed Index, which measures market sentiment, indicated growing fear among investors. The index dropped to 43 out of 100, down from 46 the previous day, signaling cautious market behavior.
Previous Tariff Actions and Market Volatility
Trump’s tariff policies have historically impacted financial markets, including crypto and stocks. On February 1, he imposed 25% tariffs on major trading partners Canada and Mexico, along with 10% on China. This move led to widespread market sell-offs before a recovery phase began.
Further uncertainty looms as Trump considers additional tariffs on the EU, superconductors, oil, gas, steel, and copper. Investors remain cautious, anticipating further market swings based on future policy changes.
What’s Next for Bitcoin? 🚀
Despite the initial shock, Bitcoin and the crypto market have shown resilience. Analysts suggest that while trade policies influence short-term fluctuations, long-term trends depend on broader economic factors such as institutional adoption, regulatory clarity, and market demand.
For now, crypto investors will keep a close eye on upcoming trade developments, assessing how tariff decisions might shape future price movements. Market volatility remains a key concern, but Bitcoin’s ability to recover highlights its growing strength in uncertain times.
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