Donald Trump’s recent 25% tariffs on steel and aluminum have raised concerns within the cryptocurrency market, prompting questions about whether the industry has benefited from his political changes. Following the announcement, Bitcoin and Ethereum experienced notable price fluctuations, with the crypto market cap declining before showing signs of recovery. Future tariff considerations may further impact the market, particularly for major cryptocurrencies.

The recent political landscape surrounding the cryptocurrency market has experienced a turning point following Donald Trump’s ascendance to the presidency and the subsequent economic policies implemented by his administration. Trump’s administration was initially perceived as favorable for the crypto sector, potentially ushering in crypto-friendly regulations. However, his recent move to impose a 25% tariff on steel and aluminum has created concerns regarding its indirect effects on the cryptocurrency industry, raising the question of whether the market has truly benefited from recent political changes in the United States.

Effective February 9, Trump’s administration announced tariffs targeting the aluminum and steel industries, resulting in immediate repercussions across various markets. Countries such as Canada, Brazil, Mexico, South Korea, and more, were notably affected. Following this announcement, the cryptocurrency market’s total market capitalization experienced a decline of approximately 0.32% but has recently shown slight signs of recovery with increased market performance.

Since the announcement, Bitcoin experienced notable price fluctuations, demonstrating a decline of approximately 0.040% from February 8 to 9, with prices bottoming at around $94,715.39 on February 9. Meanwhile, Ethereum’s market also faced challenges, slipping by approximately 0.20%. Despite these challenges, both cryptocurrencies have shown modest recoveries today, indicating ongoing volatility in investor confidence.

The administration’s earlier imposition of tariffs on Canada, Mexico, and China had previously sent shockwaves through markets, exacerbating trade tensions. As a result, the cryptocurrency market cap fluctuated significantly, beginning at $3.45 trillion on February 1 before hitting a low of $3.19 trillion the following day. Despite a brief rebound, the market remains susceptible to external pressures and uncertainties associated with tariff implementations.

Looking ahead, reports indicate that Trump may consider extending similar tariffs to sectors such as semiconductors, oil, and gas, which could have additional ramifications for the cryptocurrency market. Should these tariff plans unfold, Bitcoin and Ethereum may particularly be vulnerable to shifts in investor sentiment and economic stability, compounding the uncertainty currently faced by the crypto market.

In summary, the cryptocurrency market is currently grappling with the uncertain repercussions of Donald Trump’s tariff policies on metals and potential future tariffs. While there were initial expectations of favorable conditions under his administration, recent tariff moves have instigated concern among investors and led to notable market volatility. The future remains uncertain, particularly for key cryptocurrencies such as Bitcoin and Ethereum, should additional tariffs be enforced.

Original Source: coinpedia.org

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