Crypto markets faced a temporary dip as Trump imposed 25% tariffs on steel and aluminum, but Bitcoin and Ether have since rebounded.
Donald Trump Announces Steel and Aluminum Tariffs
Bitcoin and the broader crypto market stumbled after Donald Trump announced new tariffs on steel and aluminum imports. The 25% tariff on these materials, along with reciprocal tariffs on certain countries, sparked concerns across financial markets, leading to a brief pullback in BTC prices.
Bitcoin and Crypto Market React to Tariffs
Following Trump’s Feb. 9 announcement, Bitcoin dropped to $94,000, but quickly recovered, reclaiming the $97,000 level, according to CoinMarketCap. Meanwhile, Ether (ETH) briefly fell to $2,537 before rebounding to $2,645.
Market Cap and Sentiment Shift
The total crypto market cap saw a decline from $3.15 trillion to $3.10 trillion before bouncing back to $3.13 trillion. The Crypto Fear & Greed Index reflected market unease, dropping to 43 from the previous day’s 46, keeping sentiment in fear territory for the past week.
Tariffs and Previous Market Impact
Trump’s latest tariff push extends beyond metals, with plans for levies on the EU, superconductors, oil, gas, and copper. His Feb. 1 tariffs on Canada, Mexico, and China initially triggered an $8 billion to $10 billion liquidation event, affecting both stocks and crypto markets. A temporary 30-day pause on Mexican and Canadian tariffs stabilized the market, but Trump has not ruled out their return.
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