Trump's 25% Tariff Announcement Sparks Crypto Market Volatility
Crypto Market Reacts to Trump's 25% Tariff Amid Economic Uncertainty Cryptocurrency exchange trading exhibits volatility after former U.S. President Donald Trump announces a tariff of 25% on steel and aluminum imports because of fears of impending trade war. From the decks of Air Force One, Trump confirmed the tariffs, saying they would take effect on Monday, and certain reciprocal tariffs would be expected to be announced midweek. He said: "The United States will not put up with one-sided trade agreements any longer. If they are charging us 130% and we're charging them nothing, it's not going to stay that way."The announcement sent ripples through global financial markets for a while across stock and crypto prices but almost immediately, the crypto market started showing signs of recovery.Bitcoin and Ethereum React to Tariff NewsBitcoin price has fallen to $94,000 following the announcement of tariffs by Trump, before recovering quickly back above $97,000. Ethereum (ETH) responds similarly, falling to $2,537 and recovering as of this writing to $2,644. According to CoinMarketCap data, the crypto market actually dipped from $3.15 trillion to $3.10 trillion and then bounced back to $3.19 trillion. These battering fluctuations are, of course, reflective of the economic uncertainties pooled around tariffs and their complicated results on investor sentiment about crypto assets.Market Shows Resilience Amid Economic UncertaintyDespite the brief sell-off, market analysts believe Bitcoin’s ability to stay above $96,000 is crucial for maintaining bullish momentum. Avinash Shekhar, Co-Founder & CEO of Pi42, commented:“The crypto market is showing resilience despite volatility driven by economic shifts. Uncertainty around tariffs briefly pressured Bitcoin and Ethereum, but investor confidence has maintained key support levels.”Vikram Subburaj, CEO of Giottus, echoed similar sentiments, noting:“Bitcoin continues to consolidate near $96,000 and could rebound from this range. Concerns over U.S. tariffs and delays in quantitative easing have weighed on crypto performance in recent days.”Meanwhile, stablecoin trading volume surged 41.26%, reaching $95.61 billion—indicating that many traders moved into more stable assets during the market dip.Bitcoin Holds Strong Amid Trump’s Economic PoliciesWhile discussions on Trump's tariffs continue, crypto investors will watch for possible rippling effects on financial markets. More analysts believe any escalation in Trump's tariffs policies would bring further volatility. Nonetheless, the imminent recovery of Bitcoin suggests that investors continue to see it as a hedge against economic instability.A few days back only we saw the news of the impact of Trump tariff’s pause which offered temporary relief to crypto miners. With Trump expected to make further crypto-related announcements, possibly during Trump at Super Bowl media engagements, traders will be watching for Trump news on crypto developments.For now, Bitcoin’s market cap has risen to $1.93 trillion, with a 0.70% increase, while BTC’s 24-hour trading volume surged 74.44% to $37.33 billion. This indicates that, despite tariff concerns, investor confidence in crypto remains strong.As more details on Trump tariffs emerge, traders will be closely monitoring how global markets and digital assets react in the coming days.