Bitcoin Shaken but Still Standing: Decoding a Poker Move Made in the USA

By announcing 25% tariffs on steel and aluminum entering the United States, he sowed panic in the financial markets. Bitcoin was not spared from the spanking

Donald Trump's "Make America Great Again" initiatives have had a wide range of effects on the financial markets, including bitcoin.

When Trump announced 25% tariffs on steel and aluminum entering the United States, it caused panic in the markets. Bitcoin briefly dropped to $94,000 before bouncing back to over $97,000.

The same story unfolded for Ether, which fell to $2,537 before recovering above $2,645.

The crypto market as a whole wobbled, with total capitalization dropping from $3.15 to $3.10 trillion. However, after a few hours of panic, the bullish trend resumed.

The fear, measured by the Crypto Fear & Greed Index, is nonetheless still very present. It dropped from 46 to 43 in just 24 hours, signaling a market still timid.

Trump, for his part, has not finished playing the troublemaker: after steel and aluminum, he already plans to tackle other sectors like semiconductors and oil.

This is not the first time that the markets have taken a Trump-signed uppercut. Since the beginning of the month, the former president has been multiplying protectionist announcements, imposing 25% tariffs on imports from Canada and Mexico, and 10% on those from China.

The result? A generalized chaos, from Nasdaq to cryptos to South Korean steel mills.

If certain U.S. trading partners hope these measures won't last long, Trump persists and signs:

“ If we are taxed at 130% and we don’t tax anything in return, it won’t stay like this,” he stated.

This protectionist power move however has its limits. During the previous wave of tariffs, he had to backtrack by suspending tariffs on Canada and Mexico after just 30 days.

But let's be clear: the truce is only temporary, and the markets are already trembling at the thought of a new wave of surcharges.

While bitcoin and the crypto market quickly digested the news, the situation remains fragile. Every Trump announcement causes a shockwave, and the latest episode is not going to reassure investors.

Liquidations have been colossal, reaching between $8 and $10 billion according to Bybit.

Some figures to measure the extent of the shock:

Although the storm seems temporarily calmed, the specter of a collapse still looms. If Trump follows through on his threats and reintroduces the suspended tariffs, the crypto market could experience another shakeup.

This sudden drop, although quickly corrected, illustrates the market’s fragility in the face of Trump’s whims. Some analysts even estimate that Bitcoin could still collapse, especially if the crucial threshold of $93,000 were to be tested again. One might say that the battle between BTC and U.S. protectionist decisions is just beginning.