Trump’s tariff policies shook the crypto market last week. Though countries like Mexico and Canada achieved a one-month postponement, tariffs on China have already been enacted. 

BeInCrypto spoke with ‬Kristian Haralampiev, Structured Products Lead at Nexo‬, to understand why Trump’s tariffs caused markets to panic, what the crypto markets should expect 30 days from now, and the areas where the industry could find opportunities.

Trump Tariff Announcements Shake Crypto Market

In the first week of February, US President Trump announced that he would impose a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. Additionally, he applied a 10% levy on Canadian energy resources. 

These announcements triggered widespread reactions across traditional and crypto markets. Though these tariffs were said to be effective this Tuesday, global financial markets began selling off the prior weekend in preparation.

Though cryptocurrency markets are not inherently tied to trade deficits in the same way equities might be, they still took a significant hit. Following Trump’s tariffs announcements, the total crypto market capitalization contracted by approximately 8% in just one day– falling to about $3.2 trillion.

Bitcoin dropped to a minimum of $91,281, while Ethereum fell as low as $2,143. These fluctuations resulted in billions being wiped from the market. According to Coinglass, total liquidations exceeded $2.23 billion in a 24-hour period. No digital asset went unharmed.

A day before the executive orders were to take effect, Trump agreed to suspend the tariffs against Mexico and Canada for one month. However, China and the US did not reach a negotiation, and the US’s 10% levy on Chinese imports went into effect.

The crypto markets responded favorably to these postponements. XRP, which had dropped by over 25% in response to Trump’s tariff announcements, Go to Source to See Full Article
Author: Camila Grigera Naón