Crypto Market Dip – How US Tariffs Are Affecting Bitcoin and Ethereum
Crypto Market Dip– Crypto markets experienced a temporary dip following US President Donald Trump’s announcement of new tariffs on steel and aluminum imports. On February 9, Trump revealed that any steel and aluminum entering the United States would be subject to a 25% tariff, escalating tensions in the ongoing US trade war. According to the Associated Press, Trump emphasized that the US would also impose reciprocal tariffs on countries that charge import fees on US goods.
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump stated.
Crypto Market Impact
In the wake of Trump’s tariff announcement, the cryptocurrency market saw a brief slump. Bitcoin (BTC) dropped to $94,000, but soon regained its momentum, climbing back over $97,000, as reported by CoinMarketCap. Similarly, Ether (ETH) fell to $2,537 before recovering to around $2,645.
The overall crypto market capitalization also took a hit, falling from $3.15 trillion to $3.10 trillion, but it has since made a partial recovery, reaching $3.13 trillion.
Crypto Sentiment Amid Tariff Concerns
Despite the recovery in prices, market sentiment remains cautious. The Crypto Fear & Greed Index, which measures the emotional tone of the market, has stayed in the “fear” zone, scoring an average of 44 out of 100 over the past week. The most recent update, on February 10, recorded a fear score of 43, down slightly from 46 the previous day.
Ongoing Tariff Uncertainty
Trump’s tariff plans extend beyond steel and aluminum. He has also proposed additional tariffs on goods from the European Union, including oil, gas, and superconductors. The crypto market is likely to remain sensitive to these ongoing developments, as tariff decisions continue to influence global trade relations.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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