Today, February 10, 2025, U.S. President Donald Trump announced the introduction of a 25% tariff on imported steel and aluminum. This decision has sparked a wave of discussions among economists and investors, and has also impacted global markets, including the cryptocurrency sector.
Why did Trump impose tariffs?
According to Trump, the new tariffs are aimed at protecting American industry and jobs. He stated that the U.S. has tolerated unfair trade conditions for too long, where other countries imposed high tariffs on American goods while enjoying low tariffs when exporting to the U.S. Now, Washington is aiming for 'trade fairness.'
However, economists warn that such measures could provoke trade wars and lead to increased production costs domestically, which could harm the economy in the long run.
Market reaction: panic and recovery
After the announcement of tariffs, stock markets reacted with an immediate drop. Investors began to exit high-risk assets, which also affected cryptocurrencies. Bitcoin immediately fell by nearly 5%, dropping below $95,000, followed by a decline in the entire crypto market.
However, by morning, the situation began to stabilize. After the U.S. Treasury Department stated that they were ready to negotiate with trade partners and possibly adjust tariffs, investors calmed down a bit. Bitcoin recovered to $98,000, and Ethereum and other altcoins also began to rise.
Why did cryptocurrencies react to the tariffs?
Cryptocurrencies are often considered risky assets, and during times of global economic uncertainty, investors prefer to move into more stable assets such as gold or the dollar.
The rise in inflation risks due to potential increases in the prices of goods and raw materials is prompting investors to seek protective assets, but cryptocurrencies have not yet become a full-fledged alternative to gold.
Concerns over regulation: some analysts believe that the strengthening of Trump's protectionist policies may also affect the cryptocurrency market, especially in terms of strict control over digital assets.
What's next?
In the coming days, markets will continue to react to the developing situation. If U.S. partner countries announce retaliatory tariffs, this could lead to further volatility and a renewed decline in Bitcoin. However, if trade negotiations mitigate the effects of the new tariffs, cryptocurrencies may continue to recover.
Currently, Bitcoin is trading around $98,000, which is still below recent highs, but above the morning lows. Investors are closely monitoring the next steps of the Trump administration and the reactions of global economies.
Conclusion
The introduction of tariffs on steel and aluminum has once again shown how sensitive the cryptocurrency market is to global economic news. Although Bitcoin and other digital assets are positioned as independent from the traditional financial system, in practice they respond to macroeconomic events just as much as stock markets do.
At this point, investors should be prepared for heightened volatility and consider political decisions when making investment choices.