Bitcoin Price Dips After Trump’s New Tariffs Hit Global Trade – What’s Next for Crypto?

Donald Trump’s victory over Kamala Harris Kamala Harris Kamala Harris is an American politician attorney, and currently serving as vice president of the United States. She is the first female vice president and the highest-ranking female politician in the U.S. Kamala was Born in Oakland, California, and graduated from Howard University with a degree in political science and economics, and later pursued her law degree from the University of California, Hastings College of the Law. As a politician, she implemented stricter laws, the DREAM Act, and federal legalization of cannabis, healthcare, and taxation reform. Harris secured enough non-binding support from delegates to become the speculative nominee of the Democratic Party. Vice President was seen by many in the crypto community as a turning point for the industry. With his pro-crypto stance, expectations were high for policies that would support Bitcoin and other digital assets. To some extent, his administration has delivered on those hopes.

But now, a different kind of policy is making waves – one that has nothing to do with crypto directly but is still shaking up the market. Trump’s new tariffs on aluminum and steel have sent shockwaves through the global economy, and surprisingly, the crypto market hasn’t been spared. Prices took a hit following the announcement, raising a big question: Are these economic policies helping or hurting crypto investors?

Let’s break down what’s happening and why traders are watching these tariff decisions closely.

Trump’s New Tariffs Shake Global Markets

On February 9, the Trump administration made a bold move by imposing a 25% tariff on aluminum and steel, affecting major exporting and importing countries.

According to the International Trade Administration’s Global Steel Trade Monitor:

• The top steel exporters to the U.S. include Canada, Brazil, Mexico, South Korea, Russia, Japan, Germany, Turkey, Vietnam, and Taiwan.
• The leading importers of U.S. steel are Canada, Mexico, China, Italy, India, Belgium, Malta, Brazil, Germany, and South Korea.

Crypto Market Reacts to Trade Policy

Following the tariff announcement, the crypto market saw a 0.32% decline in total market cap yesterday. However, today it rebounded by 0.64%.

Despite this recovery, investor confidence remains weak. The Crypto Fear and Greed Index dropped from 46 to 43, showing that the rebound has not reassured investors.

Bitcoin and Ethereum Price Fluctuations

Bitcoin reflected this uncertainty:

• Between February 8 and 9, BTC dropped by 0.040%, hitting a low of $94,715.39.
• Today, Bitcoin has recovered slightly, rising by 0.51%.

Ethereum followed a similar pattern:

• Yesterday, ETH fell by 0.20%.
• Today, it has gained 0.12%, but it hasn’t fully recovered.

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•   Red Alert: Trump’s 25% Tariff on Metals Shakes Markets, XRP and Dogecoin Suffer Major Losses
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Tariff Policies Continue to Shake the Market

This isn’t the first time Trump’s tariff decisions have caused market turbulence.

• February 1: The administration imposed a 25% tariff on Canada and Mexico and a 10% tariff on China.
• February 3: The tariffs on Canada and Mexico were paused.
• Meanwhile, the U.S.-China trade war escalated, with China hitting back with a 15% counter-tariff on selected U.S. goods.

The pause on Canadian and Mexican tariffs is only for 30 days, and there’s a possibility they could be reinstated.

Crypto Market Still Struggling to Recover

The crypto market’s recent price swings reflect the uncertainty around these trade policies:

• February 1: Market cap stood at $3.45T.
• February 2: It dropped to $3.19T.
• February 3: A small recovery to $3.29T.
• February 4–7: Another dip to $3.09T.
• Currently: The market cap is $3.12T, still recovering.

More Tariffs Could Mean More Crypto Volatility

Reports suggest that the Trump administration may impose similar tariffs on semiconductors, oil, gas, and copper – industries that could indirectly affect crypto mining and infrastructure.

There are also rumors that the European Union could be the next target for tariffs.

If Trump continues down this path, the crypto market – especially Bitcoin and Ethereum – could face more turbulence in the coming months.