The cryptocurrency market has experienced significant volatility in recent months, influenced by U.S. trade policies, including tariffs imposed by President Donald Trump. Here's an overview of the key developments and their impact on the crypto sector:(Investing.com South Africa)
📉 Initial Market Decline Due to Tariffs
In early February 2025, President Trump announced a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods. This move led to a sharp decline in cryptocurrency prices:(Investing.com South Africa)
Bitcoin (BTC) dropped to a three-week low of $91,441.89.
Ethereum (ETH) fell nearly 25% in value over three days.
Altcoins like XRP and Cardano's ADA experienced losses exceeding 20% .(The Bit Journal, @EconomicTimes, Cointelegraph)
The tariffs raised concerns about trade wars and their potential to disrupt global supply chains, particularly affecting U.S. crypto miners reliant on imported hardware.(CoinMarketCap)
📈 Market Recovery Amid Trade Deal Optimism
In early May 2025, Bitcoin's price surged past $100,000 for the first time since February, reaching $101,293. This rebound was attributed to a new U.S.-U.K. trade agreement that eased market uncertainties and boosted investor confidence .(Barron's, Reuters)
Other cryptocurrencies also saw gains:
Ethereum (ETH) climbed over 14% to $2,050.46.
Solana (SOL) and XRP experienced significant increases in value.(Reuters, Barron's)
The positive market response was further supported by institutional investments and easing geopolitical tensions.(Reuters)
🏗️ Impact on Crypto Mining Industry
The tariffs on Chinese imports, particularly on mining hardware, have had a notable impact on the U.S. crypto mining industry:(CoinMarketCap)
Companies like Bitmain and Canaan, major suppliers of mining equipment, are based in China.
The 10% tariff on Chinese goods increased the cost of mining rigs, affecting profitability for U.S. miners .(CoinMarketCap)
Additionally, retaliatory tariffs from China on U.S. products, including energy resources, have further #TrumpTariffs
