Trump’s Tariffs and the Crypto Market

• Trump’s “Make in America” campaign is increasing trade restrictions, implementing a 25% import tax on key metals.
• The crypto market may face further declines; Bitcoin (BTC) has already dropped significantly.

The crypto market has lost 12.19% of its market cap in February, influenced by recent tariffs that pushed Bitcoin down to nearly $92K. Trump’s tariffs on steel and aluminum add pressure to an already volatile market.

Brace for a Test of Patience

As 2025 progresses, Bitcoin has experienced two sharp drops exceeding 10% in value, decreasing from six figures to five. The latest dip followed the imposition of tariffs, which caused a surge in BTC deposits across exchanges. Investors are reacting by de-risking their portfolios. Meanwhile, Bitcoin currently enjoys support between $88K and $90K, attracting both institutional and retail buyers.

The potential for a repeat of the 2018 crash, where Bitcoin fell 72% after a 10% import tax on Chinese goods, looms, though a similar decline isn’t assured. The Fed’s hesitance on rate cuts, coupled with a lack of bullish momentum, suggests that patience will be crucial in 2025.

Traders and the Bitcoin-Trump Dynamic

Despite the macroscale trends, new capital influx is uncertain as short-term holders lock in profits. Bitcoin’s price stability reflects a mix of HODL sentiment and quick cash-outs from short-term holders. If this balance falters, Bitcoin could be in for a deeper correction. The forthcoming CPI report will be pivotal in understanding the market’s direction amid high inflation and trade policy uncertainties.

Read Bitcoin’s [BTC] Price Prediction 2025–2026

Monitoring how tariffs impact Bitcoin is essential, as they could herald broader market shifts.