How Will Bitcoin Price React to Trump’s Tariffs?

QCP Capital, a Singapore-based crypto trading firm, noted in its latest market analysis that Monday’s market moves set the tone for the week, driven by DeepSeek’s actions and new trade tariffs.

Former President Donald Trump’s announcement of a 25% tariff on steel and aluminum rattled the markets, adding to existing uncertainty. Investors were already cautious ahead of Federal Reserve Chair Jerome Powell’s testimony and the release of the Consumer Price Index (CPI) data, both of which could impact economic sentiment.

Bitcoin’s Wild Ride

Despite market jitters, commodities remained stable, while Asian stocks dipped slightly. Bitcoin briefly fell to $95,000 before rebounding. QCP Capital believes this price move was driven more by market sentiment than actual changes in risk appetite. With Bitcoin’s volatility favoring put options until April, the market currently lacks strong bullish momentum.

Trade Tensions Rise as Tariffs Hit Key U.S. Suppliers

QCP analysts highlighted that the new tariffs could strain trade relations, particularly with Mexico and Canada, two of the top three suppliers of steel and aluminum to the U.S. The situation was further complicated by Trump’s remarks on possible sanctions against Japan, following the U.S. government’s decision to block Nippon Steel’s bid to acquire U.S. Steel.

These developments have added to market uncertainty.

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What Investors Want

Economic uncertainty often pushes investors away from riskier assets like cryptocurrencies. Some traders expect Ether (ETH) to face further losses, as the Bitcoin-to-Ether ratio declines, signaling a shift in investor preference toward BTC. This trend could also impact other crypto assets like Dogecoin (DOGE) and Ethereum-based DeFi tokens.

The Worst Might Not Be Over…

QCP noted that a feedback loop is forming – Trump, known for reacting strongly to market shifts, may respond with bolder actions, which could add to market turbulence in the weeks ahead.

With inflation concerns rising, investors now expect only one Federal Reserve interest rate cut this year. This outlook puts additional pressure on risk assets like crypto, as traders prepare for continued volatility.