U.S. President Donald Trump has just slapped hefty tariffs on steel and aluminum imports. This has resulted in a temporary tumble in cryptocurrency values. The new 25% tariff, heralded on February 9th, targets steel “coming into the United States” with an iron grip. Trump’s rationale? It’s a tit-for-tat game, where he aims to match the 130% import fees some countries levy against U.S. goods. “If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump declared, signaling a tough stance on trade imbalances.
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Crypto Markets Stagger, Then Steady
Following Trump’s announcement, the crypto sector witnessed a sharp but brief decline. Bitcoin, the leading digital currency, dipped from its perch above $97,000 to $94,000 before clawing its way back up.
Ethereum mirrored this resilience, dipping to $2,537 only to bounce back to $2,645. Despite the scare, the total market cap of cryptocurrencies shrank momentarily from $3.15 trillion to $3.10 trillion, settling later at $3.13 trillion, according to Cointelegraph.
A Glimpse of Recovery amidst Fear
The mood in the crypto sphere has been cautious, shadowed by the broader implications of a burgeoning trade war. The Crypto Fear & Greed Index, a barometer for market sentiment, hovered in the “fear” zone, reflecting investor unease.
Yet, the market’s recovery post-tariff announcement showcases the resilience and volatile nature of cryptocurrencies against macroeconomic shocks. As the dust settles, investors should track the cryptocurrency markets on TipRanks, especially with Trump’s threat to extend tariffs to other commodities and partners like the EU and China.
