Crypto market shows little recover after increasing tax on aluminum and steel

Trump new tariffs impact on cryptocurrencies:

Tensions in global trade have risen after President Donald Trump announced new tariffs, including a 25% tax on aluminum and steel.

 

 

The cryptocurrency market saw slight gains as Bitcoin, Ethereum, and XRP rebounded from a weekend decline. This reflects the growing connection between crypto and the stock market, particularly the S&P 500, which also saw minor gains. Investors are closely watching how global financial markets react to ongoing economic uncertainties. The correlation between stocks and crypto suggests that external factors, such as trade policies, could impact digital asset prices.

Tensions in global trade have risen after President Donald Trump announced new tariffs, including a 25% tax on aluminum and steel. In the previous trade war of 2018-2019, similar tariff measures led to a 2.5% drop in the S&P 500, raising concerns about possible market instability. If stocks decline in response to the latest tariff announcements, cryptocurrencies may also experience downward pressure. However, some market players remain optimistic, believing that long-term adoption and investment could help sustain crypto prices.

Read also:

One significant factor supporting Bitcoin’s price is the renewed purchasing activity by a Bitcoin treasury company “Strategy”. After pausing acquisitions in January, the firm resumed its buying spree, acquiring 7,633 BTC for $724 million at an average price of $97,255. This large-scale purchase suggests strong confidence in Bitcoin’s value despite the uncertain global economy. As institutions continue to accumulate BTC, it could provide stability against market fluctuations.

Investor interest in crypto products remains strong, as seen in the $1.3 billion inflows into digital asset funds last week. CoinShares reported that exchange-traded funds (ETFs) linked to cryptocurrencies have now had five consecutive weeks of inflows. Bitcoin ETFs alone attracted $407 million, representing 7% of Bitcoin’s total market capitalization. Meanwhile, Ethereum ETFs gained even more attention, with $793 million in inflows, surpassing Bitcoin for the first time this year.

Read also:

Despite ongoing trade tensions, confidence in digital assets appears to be holding steady. Altcoins like XRP and Solana also saw positive inflows, indicating broader interest in the market. While traditional stocks may struggle in response to economic policies, cryptocurrency investments continue to attract capital. This suggests that, while the market remains volatile, many investors still view crypto as a valuable asset class in the long run.