On February 10, 2025, President Trump's announcement of a 25% tariff on all steel and aluminum imports caused a dip in the crypto market. This event exacerbated trade tensions, affecting cryptocurrency prices including Bitcoin, XRP, and Dogecoin.
Impact of Tariffs on the Market
The new tariffs will affect several countries such as Canada, Brazil, and Mexico, major suppliers of steel and aluminum. The uncertainty surrounding trade policy is causing a broader market downturn, as investors become cautious amid fears of potential economic slowdowns.
Effect on Bitcoin Price
Bitcoin, which fell to $94,000, might continue to drop early next week due to significant liquidity beneath current levels. Concerns are raised that market reaction could negatively impact further price with large investors accumulating Bitcoin, signaling a potential downside strategy.
Future Market Outlook
Analysts suggest Bitcoin's price may consolidate until major events, such as regulatory announcements or technological breakthroughs, shift market sentiment. Despite current instability, Bitcoin continues to dominate the sector, holding steady above 60% market share.
The tariff issue raises questions about Bitcoin’s role as a hedge, as recent events challenge this idea. U.S. regulators are still determining digital asset frameworks, especially in an election year. As more details on the tariffs are awaited, cryptocurrencies are seen as both vulnerable to global shocks and increasingly valuable as strategic assets.
