Crypto Prices Dip 3% as Trump Announces Metal Import Tariffs
Cryptocurrency prices fell sharply Monday after former President Donald Trump pledged to impose sweeping 25% tariffs on all steel and aluminum imports, reigniting global trade tensions. The total crypto market cap dropped 3%, with Bitcoin, Ether, XRP, and Dogecoin leading the decline. Trump’s announcement, made ahead of the Super Bowl, signaled a major escalation in trade policy, including reciprocal tariffs mirroring rates set by other nations. Analysts warn these measures could heighten market volatility and inflationary risks.
Bitcoin, Ether, XRP, and Dogecoin Prices Tumble
- Bitcoin dipped 0.5% to 96,871,strugglingtoholdthe96,871,strugglingtoholdthe97,000 support level.
- Ether fell 1.5% to $2,627, extending losses from the previous week.
- XRP and Dogecoin both plunged 4.2%, hitting 2.39and2.39and0.2486, respectively.
The declines reflect broader anxiety over Trump’s tariff strategy, which targets key steel suppliers like Canada, Brazil, Mexico, South Korea, and Vietnam.
Crypto Trading Volumes Hit Pre-Trump Election Levels
Data from 10X Research reveals crypto trading volumes have collapsed to levels last seen before Trump’s 2024 election campaign began. Analysts attribute the slump to uncertainty around Trump’s proposed “Bitcoin Strategic Reserve,” a policy that may take six months to clarify. Meanwhile, savvy traders are abandoning altcoins for Bitcoin, driving its dominance above 60% and stifling recent memecoin rallies.
Market Rotation to Bitcoin Reflects Risk Aversion
The crypto sector faced dual headwinds last week: Trump’s tariff plans and fading altcoin momentum. Experts note parallels to 2018–2019, when Trump’s trade wars rattled markets but avoided triggering inflation. “Tariffs raise import costs, which can fuel inflation,” said one analyst. “However, in Trump’s first term, markets absorbed the shock—Bitcoin reacted similarly then as it is now.”
What’s Next for Crypto Prices?
Bitcoin’s price consolidation could persist until a major catalyst emerges. Potential triggers include:
- Regulatory clarity from governments.
- Breakthroughs in blockchain tech (e.g., Ethereum’s upgrades).
- Macroeconomic shifts, such as interest rate changes or geopolitical events.
Despite recent Crypto Prices Dip, the crypto market remains a 3.2 trillion power house. Bitcoin’s price has surged over 1003.2 trillion power house. Bitcoin’s price has surged over 10097,000 compared to $47,000 in early 2023. For now, traders eye macroeconomic developments and Trump’s tariff rollout for directional cues.
Key Takeaway: Trump’s trade policies are amplifying market uncertainty, driving a flight to Bitcoin while altcoins falter. Investors should monitor tariff impacts on inflation and global supply chains—factors that could dictate crypto’s next major move.
