- A market sentiment analyzer for cryptocurrency, the crypto fear and greed index has continued to be in the fear area since last week.
- On February 1, Trump imposed tariffs of 25% on prominent trading partners like Canada and Mexico and around 10% on China.
- The largest cryptocurrency went down to $94,000 and then pushed back to $97,000, as per the data from the CoinMarketCap.
The crypto market dipped as the President of the United States Donald Trump imposed tariffs on aluminum and steel, a recent barrage in a boosting US trade war. Trump mentioned that any steel and aluminum coming into the state would be struck with a 25% tariff, as per the report of the Associated Press on February 9.
He also revealed that the White House would introduce tariffs on nations imposing import fees on US goods. He further went on to say that if they are charging us 130% and we are charging them nothing, it is not going to be that way.
The gradual recovery
After the announcement of the President, the crypto market slumped all over the world. However, a gradual recovery can also be witnessed. The largest cryptocurrency went down to $94,000 and then pushed back to $97,000, as per the data from the CoinMarketCap.
At the same time, the same data platform provider reveals that Ether has also pushed its way back to almost the same level it was before the tariff announcement, attaining a low of $2,537 but now it is trading back to $2,645.
Meanwhile, the overall crypto market slumped from $3.15 trillion to $3.10 trillion. After that, it recovered to $3.13 trillion. A market sentiment analyzer for cryptocurrency, the crypto fear and greed index has continued to be in the fear area since last week. It has shown an average score of 44 out of 100.
At the time of writing this, it was still in a fear state, having a score of 35, down from 46 as registered on February 9. Trump has also revealed other plans to impose tariffs on the EU, superconductors, oil, gas, steel, and copper.
The recent tariff imposition
On February 1, Trump imposed tariffs of 25% on prominent trading partners like Canada and Mexico and around 10% on China. This also resulted in a dip in stock and crypto markets.
The Chief Executive Officer of a prominent crypto exchange, Ben Zhou anticipated the liquidations could have attained $8 billion to $10 billion. Ultimately, the crypto market rebounded after the imposed tariffs on Mexico and Canada were halted on February 3 for a month. Trump has not rejected the tariffs once the halt period expires.
On February 3, the PM of Canada, Justin Trudeau posted on X asserting that he had a phone call with the 47th President of the United States, Donald Trump which led to halting to 25% for a minimum duration of 30 days and both countries will work collaboratively.
