- Trump’s new 25% tariffs on steel and aluminum imports spark concerns for cryptocurrency market stability.
- Ethereum (ETH) shows particular vulnerability, down 23% year-to-date compared to Bitcoin‘s 2.5% gain.
- Market indicators suggest increased bearish sentiment, with record short interest in ETH.
- Lack of layer-1 catalysts and narrative leadership continue to weigh on Ethereum’s performance.
- Traders expect market volatility to increase as Trump’s trade policies impact risk assets.
Cryptocurrency markets face renewed pressure as Donald Trump‘s announcement of 25% tariffs on steel and aluminum imports introduces fresh economic uncertainty, with Ethereum bearing the brunt of market concerns amid broader trade tensions.
The impact on digital assets appears particularly pronounced for Ethereum, which has experienced a significant reversal, erasing gains from late November. Augustine Fan, head of insights at SignalPlus, notes: “The rise of BTC vs everything else is most evident in comparison with ETH, which is seeing record short-interest and FUD with the 2nd largest token being down -23% YTD vs a +2.5% gain in BTC.”
Market analysts at QCP Capital warn of a potential feedback loop, stating that “President Trump, highly sensitive to market reactions, is facing a market increasingly calling his bluff. This could embolden him further, adding another layer of volatility.”
The situation has broader implications for the cryptocurrency ecosystem, especially for Ethereum-based assets. Nick Ruck, director at LVRG Research, explains that reduced expectations for Federal Reserve interest rate cuts this year have created additional headwinds for risk assets, including cryptocurrencies.
Major cryptocurrencies showed minimal movement during European trading hours on Monday, with Bitcoin, Ether, XRP, Solana’s SOL, and Dogecoin recording gains under 1% over 24 hours. Meanwhile, BNB Chain’s BNB experienced a 4.5% decline following a Sunday rally.
The market’s reaction reflects growing concerns about the intersection of traditional economic policies and digital asset valuations, particularly as trade tensions threaten to escalate global market volatility.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- AI Prediction Markets Could Speed Up Social Media Fact-Checking Process
- Global DLT Bond Issuance Soars 260% to €3 Billion in 2024, AFME Reports
- Ethereum Daily Transaction Fees Plunge Below $1M, Hitting 5-Month Low
- Limassol Resident Loses €430,000 in Major Crypto Investment Scam
- ChartUp – The Solana Volume Bot That Drives Trading Success
