Trump' recent 25% tax is adding pressure to Bitcoin. With the Fed skeptical on rate cuts, is the crypto market bracing for a crash?
Trump’ “Make in America” campaign was ramping up trade restrictions, with a 25% import tax on key metals now in play.The crypto market losing 12.19% of its market cap in February alone is no accident. The recent tariffs sentdown to nearly $92K. Now, Trump’s new 25% tariffs on key metals—steel and aluminum—are adding to the pressure.
With his “America First” strategy dominating the headlines, will investors hold strong for a rebound, or is this the start of aTwo months into 2025, Bitcoin has already seen two sharp drops, each cutting over 10% of its value and bringing it down from six figures to five.across all exchanges – soaring past 70K in a single day, the highest this year.. And with a 25% import tax on steel and aluminum, the Fed’s 2% inflation target may be slipping further out of reach.
In the short term, Bitcoin has found support between $88K and $90K, attracting both institutional and retail buyers. But with so many moving parts, is the real BTC bottom still a long way down?Back in 2018, when Trump imposed a 10% import tax on Chinese goods, Bitcoin collapsed 72% by year-end. While a similar crash isn’t expected, the impact of tariffs on the crypto market can’t be ignored.
With the Fed hesitant on rate cuts, investor greed hanging by a thread, and Bitcoin’s historically bullish Q1 failing to spark FOMO, 2025 is shaping up to be a year when patience will be tested like never before.Given the macro trends, expecting fresh capital to flow into the market may still be premature. As short-term holders lock in profits after each dip, a strong HODL mindset may be the best play for now.
This dynamic explains Bitcoin’s current holding pattern – while HODLers and ETFs keep BTC above its local bottom, STHs are quick to cashBut how long can BTC stay in this cycle? Investors still back the Bitcoin-Trump duo, but confidence is being tested with each high-stakes trade policy.If this balance breaks, Bitcoin’s true bottom could still be far away.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Only True Geography Pros Will Score 25/25 On This Country TriviaThe world is vast and diverse, filled with incredible countries that each belong to unique continents. How well do you know where they all fit? This trivia quiz takes you on a journey around the globe, testing your knowledge of geography while exploring nations across Europe, Asia, Africa, and the Americas.
Read more »
Bitcoin price prediction: Assessing BTC’s odds of staying above $100KBitcoin price prediction shows possible extension of the $90K-108K range in the near-term. But a possible breakout to $110K was likely.
Read more »
Bitcoin holders clamp down on selling – Assessing its impactBitcoin’s LTH distribution has slowed down again, signaling a potential end to selling pressure and possible price stabilization...
Read more »
Spot Bitcoin ETFs turn 1 – Assessing what’s done and what’s next in 2025BlackRock's IBIT dominance highlights Bitcoin ETFs' rise, as Ethereum ETFs ready themselves for a pivotal year...
Read more »
Bitcoin Consolidates After FOMC, Tether Expands on Bitcoin Network, Kraken Resumes StakingBitcoin has been trading in a tight range after the Federal Open Market Committee (FOMC) meeting. The Fed maintained its interest rate, citing 'somewhat elevated' inflation. Meanwhile, Tether announced plans to mint USDT on Bitcoin's base layer and Lightning Network, utilizing the Taproot Assets protocol. Kraken also resumed crypto staking in the US after a two-year hiatus due to SEC regulations. Additionally, the news highlights the potential for BTC and ETH ETFs to list soon, with recent updates on S-1 filings signaling a near future launch.
Read more »
25% price rally may be on for AVAX, but what do traders, investors have to say?AVAX’s strong technical setup and growing interest from traders and investors point to the potential for a 25% rally...
Read more »