- President Trump’s 25% tariff on metals has caused significant drops in Bitcoin, XRP, and Dogecoin prices.
- Despite market volatility, large-scale Bitcoin accumulation indicates confidence in its long-term value.
On February 10, 2025, a 25% tariff by President Trump on all steel and aluminum imports triggered global markets’ responses, hitting hardest in the cryptocurrency sector; this statement merely fueled already exacerbated trade tensions while bringing about market-wide selling pressure. Bitcoin, the biggest cryptocurrency, also plunged to $94,000. Other digital currencies such as XRP and Dogecoin plummeted. They fell over 4%.
The newly enacted tariffs have begun targeting major aluminum and steel-producing countries like Brazil, Canada, and Mexico, which has increased investor nerves about the economy slowing down because of the rising instances of trade-war escalations. Uncertainty in the trade policies has led investors to be more cautious, hence contributing to the decline in the cryptocurrency valuations that have been witnessed.
Bitcoin’s price trend in the cryptocurrency market hints at a significant amount of liquidity below the current levels. Analysts believe that it could go even lower by next week in its bid to capture that liquidity, eventually touching around $88,000 on the support. Yet, despite this volatility, big investors seem largely unfazed. Last week alone, over 70,000 BTC were withdrawn from exchanges, with investors looking at this price level as the best time to buy.
Cryptocurrency Market Uncertainty Looms as Trade Tensions Rise
XRP is currently trading around $2.40. The coin has lost 2.83% of its value compared to its previous close. XRP has traded between $2.32 and $2.48 throughout the day. Dogecoin is trading at approximately $0.25. It has declined by 2.48% from its previous close. The intraday high for Dogecoin was at $0.2577 and the intraday low was at $0.2409.
Market analysts say that, shortly, Bitcoin’s price may enter the consolidation phase before an important event, such as a regulation announcement or some kind of technological breakthrough, changes the trend and the market sentiment. Even with the recent instability, Bitcoin commands more than 60% in market share on its back.
The imposition of tariffs questions Bitcoin’s role as a hedge against traditional market volatility as recent events suggest this was not necessarily the case. U.S. regulators are striving to build frameworks for digital assets, an undertaking complicated by an election year. While waiting for the details on the tariffs to trickle in, the market feels cryptocurrencies are both sensitive to global economic shocks and increasingly valuable as strategic assets.
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