US President Donald Trump’s latest round of tariffs has sparked caution among market watchers, particularly for cryptocurrencies like Ether (ETH) and Dogecoin (DOGE). The 25% tariffs on steel and aluminum imports, along with existing duties, are expected to lead to economic uncertainty and potentially escalate trade wars. This can cause market volatility, affecting Bitcoin and other crypto assets.
Some traders believe that Ether’s value may be further impacted due to decreasing sentiment for cryptocurrencies. Ethereum has been particularly affected, with its price dropping by over 23% year-to-date compared to a 2.5% gain in Bitcoin.
Traders at Singapore-based QCP Capital predict that the crypto market will experience fluctuations in the coming weeks as Trump’s words continue to impact markets. They believe that investors are increasingly calling his bluff, which could lead to more volatility and affect risk assets like cryptocurrency.
The lack of short-term catalysts and narrative leadership is expected to weigh on Ethereum in the foreseeable future. Investors are betting on only one interest rate cut by the Federal Reserve this year, casting a grim outlook for risk assets, including crypto.
Source: https://www.coindesk.com/markets/2025/02/10/new-trump-tariffs-spell-caution-for-bitcoin-ether-dogecoin-bets