The crypto market faced a sharp downturn following Donald Trump’s announcement of a 25% tariff on all steel and aluminum imports. This policy shift triggered a wave of uncertainty, leading to declines in Bitcoin (BTC) and major altcoins like XRP and Dogecoin (DOGE).
Tariff Announcement and Market Reaction
On February 10, 2025, Donald Trump declared a sweeping tariff increase on imported steel and aluminum, affecting key suppliers like Canada, Brazil, and Mexico. The immediate fallout saw Bitcoin’s price plummet to $94,000, while XRP and Dogecoin lost more than 4% of their value.
With rising global trade tensions, investors are becoming increasingly cautious, fearing an economic slowdown. This situation has reignited debates on whether cryptocurrencies can withstand macroeconomic shocks or if they remain vulnerable to external pressures.
Key Levels for Bitcoin
At its current level, Bitcoin is hovering above a significant liquidity zone, which raises concerns that the price could dip to $88,000 in the coming days. However, despite market fluctuations, institutional investors continue to accumulate Bitcoin. Reports indicate that over 70,000 BTC have been withdrawn from exchanges in the past week, signaling long-term confidence among large holders.
The ongoing volatility raises the question of whether Bitcoin truly serves as a safe haven asset during economic crises. Additionally, with the U.S. elections approaching, regulatory clarity surrounding digital assets remains a hot topic, as lawmakers shape their stance on the crypto market.
For more updates on the latest economic policies and their impact on cryptocurrencies, stay tuned to Turkish NY Radio.
