Cointelegraph recently reported a slump in Bitcoin value as US President Donald Trump declared a 25% tariff on imported steel and aluminum, intensifying the ongoing US trade conflict. Trump’s announcement, reported by the Associated Press on Feb. 9, indicated that all steel and aluminum entering the US would be subject to this tariff.
In addition, the White House plans to retaliate against countries that impose import charges on American goods. “If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump asserted.
The crypto market reacted quickly to the news, with a brief downturn observed across all cryptocurrencies. However, the market soon showed signs of recovery. Bitcoin’s price, which had momentarily dropped to $94,000, rebounded to over $97,000, as per CoinMarketCap data.
Similarly, Ethereum also demonstrated resilience, recovering to nearly its pre-announcement level after a brief dip to $2,537. The total cryptocurrency market cap, which had fallen from $3.15 trillion to $3.10 trillion, also revived to $3.13 trillion, according to CoinMarketCap.
The Crypto Fear & Greed Index, a tool measuring market sentiment for Bitcoin and other cryptocurrencies, has remained in the ‘fear’ domain for the past week, averaging a score of 44 out of 100. The latest update on Feb. 10 saw a slight drop in this score to 43, from 46 the previous day.
Trump has also expressed intentions of imposing tariffs on the EU, superconductors, oil, gas, steel, and copper. On Feb. 1, he implemented 25% tariffs on significant trading partners, Canada and Mexico, and a 10% tariff on China, causing both stock and crypto markets to plummet. Bybit’s co-founder and CEO, Ben Zhou, estimates the liquidations could range from $8 billion to $10 billion.
Notably, the crypto market bounced back after tariffs on Mexico and Canada were temporarily suspended for 30 days from Feb. 3. However, Trump has not dismissed the possibility of reinstating these levies once the suspension period ends.
