President Donald Trump’s new tariffs have caused a stir in the financial market amid current sideways trading. Barely hours after the announcement, Bitcoin (BTC) and other assets recorded setbacks, lowering trader confidence. Most digital asset experts say the move could tighten inflows and restrict chances of a broader recovery. The total crypto market cap has slipped 3.8% since the move.
Bear Market Fear Looms
Bitcoin and altcoins have faced headwinds this year due to the United States trade wars. The new sweeping tariffs are expected to usher in a new phase of uncertainty among traders. Charles Edwards, the founder of Capriole Investment, explained that this scenario involves tariffs coming in higher than expected.
The Philly Fed Business Outlook survey is compatible with 2002, 2008, and 2022. Notably, Bitcoin saw an extreme correction in 2022 after macro and industry factors plummeted the top crypto. In another of his reports, Edwards wrote that President Trump and the Fed’s decisions could decide the ultimate technical trendline.
On one hand, bulls set sights for a $91k recovery, which looks unlikely due to recent tariffs. A dip to $71k “would likely see a sizable bounce” as sentiments point to another red wave.Â
“It remains to be seen how long the tariff uncertainty will remain. It could be days; it could be months. But we can certainly expect quite a bit of action on Wednesday as “Liberation Day” plays out. A 25% tariff on automobiles resulted in a ~6% drop in Bitcoin last week. As has been the case in the last weeks, should Wednesday’s new tariffs be substantial in magnitude, we can probably expect similar sized (or larger) moves over the coming week.”
Bitcoin’s price slipped 8% after the tariff announcement. Altcoins like Ethereum and XRP dropped over 5%, mounting sell pressure. As uncertainty grew, this spiraled into a series of whale offloads.
Trump Tariffs Impact On Crypto Stocks
President Trump signed a 10% reciprocal tariff across the board. This raised the figures imposed on China to 34%, Vietnam to 32%, and the European Union to 20%. This impact extended to crypto stocks, which often correlate with the price of Bitcoin and altcoins.
Coinbase stock plummeted 7.29% in the last 24 hours, while MSTR fell 6.4% to $291.79. Bitcoin mining stocks were also affected by the move. MARA tanked 8.6% while HUT and CLSK dropped 9% and 6%, respectively.
