By Stephen Katte, CoinTelegraph; Compiled by Deng Tong, Golden Finance
The cryptocurrency market plunged after U.S. President Donald Trump announced tariffs on aluminum and steel, the latest move in the escalation of the U.S. trade war.
Trump said any "steel" and aluminum that comes into the United States will be subject to a 25% tariff, the Associated Press reported on February 9.
He also said the White House would impose reciprocal tariffs on countries that impose import taxes on U.S. goods.
"If they're charging us 130% and we're charging nothing, that's not going to last forever," Trump said.
Crypto markets fell across the board after the tariff announcement. A steady recovery followed.
BTC briefly fell to $94,000 before recovering to over $97,000, according to CoinMarketCap.
Bitcoin fell slightly after Trump announced the tariff increase, but has since recovered. Source: CoinMarketCap
Meanwhile, Ethereum has also recovered to pre-tariff announcement levels, falling to a low of $2,537 but then recovering to $2,645, according to CoinMarketCap data.
Meanwhile, the total cryptocurrency market capitalization fell from $3.15 trillion to $3.10 trillion. It has since recovered to $3.13 trillion, according to CoinMarketCap.
The Crypto Fear & Greed Index, which measures market sentiment for Bitcoin and other cryptocurrencies, has been in fear over the past week, with an average score of 44 out of 100.
The latest update on Feb. 10 also showed a fear rating of 43, down from 46 the day before.
The Crypto Fear and Greed Index score has averaged a fear rating over the past week. Source: Alternative.me
Trump also announced other plans to impose tariffs on the European Union, superconductors, oil, gas, steel, and copper.
On February 1, Trump imposed 25% tariffs on major trading partners Canada and Mexico, and 10% tariffs on China, causing both stock and cryptocurrency markets to crash.
Estimates vary, but Bybit co-founder and CEO Ben Zhou speculated that the amount of liquidations could reach $8 billion to $10 billion.
The cryptocurrency market eventually rebounded after a 30-day suspension of tariffs on Mexico and Canada on February 3. However, Trump did not rule out the possibility of reinstating the tariffs after the suspension period ends.
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