Bitcoin Dips 4% Amid Market Uncertainty Following Trump’s Tariffs on Canadian Steel and Aluminum
The cryptocurrency market faced renewed volatility on Thursday as Bitcoin (BTC) slipped another 4%, dropping to $9,200 amid broader market uncertainty. The decline comes as U.S. President Donald Trump announced new tariffs on Canadian steel and aluminum, reigniting fears of a global trade war and its potential impact on financial markets.
The announcement, which caught many by surprise, has sent ripples across traditional and digital asset markets. Trump’s decision to impose a 25% tariff on steel and a 10% tariff on aluminum imports from Canada has raised concerns about escalating trade tensions between the U.S. and its closest trading partner. Analysts suggest that the move could lead to retaliatory measures, further destabilizing global markets.
Bitcoin, often touted as a “safe haven” asset during times of economic uncertainty, has failed to capitalize on the latest developments. Instead, the cryptocurrency has mirrored the downward trend seen in traditional markets, with the S&P 500 and Dow Jones Industrial Average also experiencing losses. This correlation has led some experts to question Bitcoin’s role as a hedge against geopolitical and economic instability.
“Bitcoin’s recent price action suggests that it is still heavily influenced by broader market sentiment,” said Michael Carter, a cryptocurrency analyst at BlockTech Insights. “While it has the potential to act as a store of value, its volatility and relatively small market size make it susceptible to external pressures, including trade wars and macroeconomic shifts.”
The 4% drop in Bitcoin’s price follows a week of lackluster performance, with the cryptocurrency struggling to break the $10,000 resistance level. Despite a brief rally earlier in the week, BTC has failed to sustain momentum, with trading volumes remaining subdued.
The tariffs on Canadian steel and aluminum are the latest in a series of protectionist measures taken by the Trump administration, which has previously targeted China and the European Union. These actions have contributed to a climate of uncertainty, prompting investors to adopt a risk-off approach.
For the cryptocurrency market, the impact of these tariffs extends beyond Bitcoin. Ethereum (ETH), Ripple (XRP), and other major altcoins have also seen declines, with the total market capitalization of digital assets falling by over $10 billion in the past 24 hours.
Some analysts, however, remain optimistic about Bitcoin’s long-term prospects. “While short-term price movements are influenced by external factors, Bitcoin’s underlying value proposition remains intact,” said Sarah Thompson, a crypto strategist at Digital Wealth Advisors. “As global economic tensions persist, we could see increased interest in decentralized assets as an alternative to traditional financial systems.”
As the situation unfolds, market participants will be closely monitoring developments in the trade war and their potential impact on both traditional and digital markets. For now, Bitcoin’s inability to decouple from broader market trends highlights the challenges it faces in establishing itself as a true safe haven asset.
At press time, Bitcoin is trading at 9,200, down 49,200, down 49,000, with resistance remaining near the $10,000 mark.
