#TrumpTariffs The tariffs imposed by President Donald Trump have had a significant impact on cryptocurrency prices, especially during times of economic and trade tension. In early February 2025, the imposition of tariffs of 25% on imports from Mexico and Canada, and 10% on those from China, generated a strong reaction in financial markets, including the cryptocurrency market.
How did Trump's tariffs affect the crypto market?
1. Abrupt price drop: Following the announcement of the tariffs, Bitcoin fell to $91,000, marking its lowest level in weeks. Ethereum and other altcoins like XRP, Cardano, and Dogecoin also experienced significant declines, with losses of up to 24% in some cases.
2. Massive liquidations: The volatility caused liquidations of over $2 billion in leveraged positions, particularly affecting investors holding long positions.
3. Risk aversion sentiment: Investors opted for assets considered safer, such as the US dollar and gold, reducing their exposure to more volatile assets like cryptocurrencies.
4. Inflation concerns: The tariffs increased inflation expectations by raising import costs, which could lead the Federal Reserve to maintain high interest rates, negatively affecting the crypto market.
What to expect in the future?
Although cryptocurrencies have shown resilience to macroeconomic events in the past, the combination of aggressive trade policies and inflation concerns could keep volatility high in the short term. However, some analysts suggest that, in the long run, a weakened dollar and lower interest rates could favor the adoption of digital assets like Bitcoin.
In summary, Trump's tariffs have introduced a new layer of uncertainty in the cryptocurrency market, highlighting the sensitivity of these assets to global economic and trade policies.