US President Trump is set to impose ‘reciprocal tariffs’ next week on certain countries. This is significant considering the impact such a move could have on the crypto market, with a potential crash a possibility.
What Trump’s Reciprocal Tariffs Mean For The Crypto Market
According to a Bloomberg report, US President Donald Trump has revealed that he plans to unveil reciprocal tariffs next week in a move that could further escalate his trade war with the country’s allies.
The President has also suggested that he plans to implement a global tariff, which will especially target the European Union. These proposed moves from Trump have brought about economic uncertainty, which is negatively impacting the crypto market and could affect it further.
It is worth mentioning that the market crashed earlier this week amid Trump’s tariffs on Mexico, Canada, and China, with over $2 billion liquidated as Bitcoin, XRP, Dogecoin, Solana, and other major caps dropped. Although the market rebounded following an agreement between the US, Mexico, and China to pause these tariffs for one month, the proposed reciprocal tariffs have again sparked a bearish sentiment among traders.
The Bitcoin price continues to swing below and above $96,000, while the broader crypto market has also stagnated amid this economic uncertainty. Considering the current outlook in the market, prices could further crash as Trump announces these reciprocal tariffs next week.
Amid this development, the market continues to suffer millions of dollars in losses. Coinglass data shows that over $250 million has left the market in the last 24 hours, with both long and short traders taking a hit.
Whales Remain Bullish On The Market
Despite the crypto market still at risk of suffering a significant crash, crypto whales remain bullish and are using this downtrend as an opportunity to accumulate more coins.
In an X post, crypto analyst Ali Martinez revealed that these investors have withdrawn over 70,000 BTC from exchanges in the past week, signaling long-term confidence in the market.
As CoinGape reported, there is the possibility of the Bitcoin price dropping to $90,000. However, crypto experts remain bullish on the market and suggested that this was the perfect buying opportunity.
The Cardano founder Charles Hoskinson also recently asserted that 2025 is crypto’s year despite the recent crypto market crash. He alluded to how the market showed strength following the $2 billion liquidation event earlier this week.
Other Factors To Consider
Besides Donald Trump’s policies, there are certain factors which could impact the crypto market. One is the US Federal Reserve’s economic policies. At the moment, the Fed look to be hawskish and are tilting towards quantitative tightening rather than quantitative easing policies.
A positive for the market was the recent release of the US job data, which showed that growth in the US labor market is slowing. This is bullish for crypto as it could force the Fed to pivot.
However, the US Central Bank will need more than that to adopt a different stance, which is why the US CPI inflation data which will be released next week is one to keep an eye on. Signs of inflation cooling off is bullish and could convince the Fed about adopting a dovish stance towards the economic’s outlook.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
✓ Share: