Bitcoin falls as Trump unveils 25% tariffs on steel, aluminum, raising market concerns and affecting crypto investor sentiment.
Crypto markets have been steadily recovering. After a brief dip in the wake of more tariff announcements from US President Donald Trump.
Crypto markets fell as US President Donald Trump proposed tariffs on aluminum and steel. The latest volley in an expanding US trade war.
According to the Associated Press on February 9. Trump has threatened to impose a 25% tax on “steel coming into the United States” and aluminum imports.
He also stated that the White House will impose reciprocal tariffs on nations who charge import fees on US goods.
“If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way,” Trump explained.
Following the tariff news, cryptocurrency markets experienced temporary dips and bleeding across the board. However, there has been a gradual rebound.
According to CoinMarketCap, Bitcoin BTC$97,691 returned to above $97,000 after temporarily falling below $94,000.
CoinMarketCap data indicates that Ethereum (ETH) has recovered to its pre-tariff level of $2,642, having fallen to a low of $2,537 before rising to $2,645.
At the same time, the overall cryptocurrency market capitalization fell from $3.15 trillion to $3.10 trillion. CoinMarketCap reports a recent recovery to $3.13 trillion.
The Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, has remained in fear mode for the past week, with an average score of 44 out of 100.
The latest report on February 10 shows a fear level of 43, down from 46 the day before.
Trump has announced intentions to impose tariffs on the EU, superconductors, oil, gas, steel, and copper.
On February 1, Trump imposed 25% tariffs on Canada, Mexico, and 10% on China, causing stock and cryptocurrency markets to plummet. Bybit co-founder and CEO Ben Zhou said liquidations might exceed $8-10 billion.
On February 3, tariffs on Mexico and Canada were suspended for 30 days, leading to a bounce in the cryptocurrency market. However, Trump has not ruled out imposing the tariffs after the moratorium period expires.
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