Crypto Markets Rebound After Initial Dip Following Trump’s Tariff Announcement
Key Highlights:
- Crypto markets saw a brief decline after former U.S. President Donald Trump announced new tariffs on steel and aluminum.
- Bitcoin dropped to $94K but quickly recovered to over $97K.
- Ethereum also rebounded, climbing back to $2,645 after briefly dipping.
- Total crypto market cap fell from $3.15T to $3.10T before recovering to $3.13T.
Crypto Market Reaction to Trump’s Tariffs
The cryptocurrency market experienced a temporary setback following Trump’s latest tariff announcement on steel and aluminum imports. According to a Feb. 9 Associated Press report, the tariffs include:
- A 25% duty on steel imports.
- Reciprocal tariffs on countries imposing high import fees on U.S. goods.
Trump defended the policy, stating:
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way.”
Following the announcement, Bitcoin (BTC) briefly fell to $94,000 before quickly regaining momentum, climbing back above $97,000, per CoinMarketCap data. Ethereum (ETH) followed a similar pattern, dropping to $2,537 before rebounding to $2,645.
Market Sentiment and Recovery
- Crypto Fear & Greed Index: The market remains in “fear” territory, scoring 43/100 on Feb. 10, slightly lower than 46/100 the previous day.
- Total Crypto Market Cap: Initially fell from $3.15T to $3.10T, but has since rebounded to $3.13T.
Trump’s Tariff Policies & Future Market Impact
Trump has also hinted at expanding tariffs on the EU, oil, gas, superconductors, steel, and copper. Earlier in February, he imposed a 25% tariff on Canada and Mexico and a 10% duty on China, triggering volatility across both stock and crypto markets.
However, market uncertainty eased after tariffs on Mexico and Canada were temporarily paused on Feb. 3 for 30 days. Experts speculate that liquidations in response to these trade tensions could have reached $8 billion to $10 billion, according to Bybit co-founder Ben Zhou.
While crypto markets have shown resilience, investors remain cautious as they anticipate further developments in U.S. trade policies and global market reactions.
