US President Donald Trump announced a 25% tariff on Canada and Mexico, affecting both traditional and cryptocurrency markets.
New Tariffs and Their Implications
A few days ago, US President Donald Trump announced a 25% tariff on trade with Canada and Mexico. Initially, this led to a market downturn, but they soon rebounded, attracting over $300 billion in liquidity after the validation of a crypto strategic reserve. However, with confirmation that tariffs would begin on March 4, 2025, traditional markets plunged again.
Impact on Cryptocurrencies
The announcement of the tariffs placed the cryptocurrency markets under bearish pressure. Bitcoin and Ethereum prices fell below important psychological levels of $84,000 and $2100, respectively. This indicates that excitement over the strategic reserve announcement was short-lived. Market participants remain wary of a potential new trade war.
Future of Bitcoin Strategic Reserve
Since the president announced the creation of a strategic reserve, there has been a push for it to consist solely of Bitcoin. Many criticize the inclusion of altcoins such as XRP, SOL, ADA, and advocate for a pure Bitcoin reserve. The formation process requires more time and parliamentary approval. Popular analyst Crypto Rover noted that Bitcoin's price has risen in anticipation of the strategic reserve, indicating potential future impacts similar to those seen after ETF approval.
The crypto markets have entered a crucial phase amidst new economic challenges, with future updates and decisions expected.
