Cryptocurrencies dropped quickly after Trump announced that imports of steel and aluminum would be taxed at 25%. The move, part of a bigger plan to start a trade war, shocked the crypto and other financial markets worldwide. Bitcoin, Ethereum, and a few different coins went down briefly but then began to rise again. Investors were initially scared because they didn’t know how safe the market was or how it might affect digital assets.
How the Bitcoin and other crypto prices change?
From what CoinMarketCap can tell, Bitcoin (BTC) dropped quickly to $94,000 after Trump announced the taxes. After Cryptocurrencies dropped it again rose back above $97,000. Ethereum fell to $2,537 then surged to $2,645. From $3.15 trillion to $3.10 trillion, all crypto assets fell; then, they climbed to $3.13 trillion.
With a 43 rating, the Crypto Fear & Greed Index denotes market uncertainty. This means that buyers are still scared. The number was a little lower than the day before, at 46, which shows that market nervousness is still present.
What tariff plans do to other plans?
Changing Trump’s trade plan has made the market even less stable. From February 1, he taxed Canada, Mexico, and China 25% more. Because of this, the stock and bitcoin markets went down quickly. Bybit CEO Ben Zhou said that these options would mean the company had to go out of business, which would cost $8 billion to $10 billion. For 30 days, taxes on Mexico and Canada were put on hold. This made the market start to get better.
Investors are still on edge because they think the impending taxes on EU goods, superconductors, oil, gas, steel, and copper will cause more problems. For markets all around, Trump’s position on reciprocal taxes and fees other nations imposes on U.S. goods further clouds things.
What will Bitcoin and crypto market do next?
Following a brief downturn, Bitcoin and the crypto market have demonstrated they can recover. Now that the market has recovered from its initial losses, traders closely watch what Trump does next. There could be more turbulence if more tariffs are implemented after the 30-day break.
Bitcoin owners and buyers must be ready for possible market swings and monitor the ongoing U.S. trade war.
