Key Points:
- Trump New Tariff Policies impose a 25% import tax on steel and aluminum, causing turbulence in global markets, including crypto.
- Bitcoin dropped to $94,000 before recovering to $97,000, while Ethereum faced strong institutional short pressure.
Trump New Tariff Policies impact financial markets, causing Bitcoin to briefly dip as investors react to trade tensions and macroeconomic uncertainty.
Trump New Tariff Policies Disrupt Markets
On February 9, Donald Trump announced Trump New Tariff Policies, imposing a 25% tax on steel and aluminum imports. Canada, Mexico, Brazil, and Vietnam are among the largest suppliers affected.
Trump also warned of retaliatory tariffs on countries imposing high taxes on U.S. goods. The policy is set to take effect immediately after its February 11–12 announcement.
This move intensified global trade tensions, particularly after Trump had previously imposed similar tariffs during his first term but later exempted key trade partners. The crypto market reacted swiftly to the uncertainty.
Read more: Trump Tariffs on Mexico Halted, Rapidly Shifting Trade War Landscape
Bitcoin and Crypto Volatility Following Tariff News
The announcement of Trump New Tariff Policies led to a market sell-off, with Bitcoin dropping to $94,000 before rebounding to $97,000. This is also the first time in four consecutive days that Bitcoin has closed around $96,500, reflecting that market sentiment is still extremely cautious.
Ethereum followed a similar trajectory, hitting $2,537 before climbing back to $2,635, down 1.2% in 24 hours.
According to The Kobeissi Letter, institutional traders on CME significantly increased short positions on Ethereum, with short contracts surging 40% in a week and 500% since November 2024. This historic level of short selling signals weak market confidence in Ethereum’s near-term recovery.
Altcoins React as Market Capitalization Fluctuates
Several altcoins struggled under Trump New Tariff Policies pressure, with tokens like RAY, ViRTUAL, and ENA facing notable declines. Memecoin TRUMP dropped 12% in 24 hours, trading at $15.33.
Total crypto market capitalization briefly fell from $3.15 trillion to $3.1 trillion but rebounded to $3.17 trillion, indicating ongoing investor participation.
Meanwhile, the Fear & Greed Index dropped to 35, reflecting market anxiety as investors weigh the macroeconomic impact of U.S. trade policies on digital assets.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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