Crypto News Catchup: Tariffs, Crypto, and Market Turmoil

Global markets remain on edge as trade tensions and regulatory shifts continue to shape economic and financial landscapes. President Donald Trump’s tariff decisions have sent shockwaves through stocks and cryptocurrencies, leading to heightened volatility and investor uncertainty. While temporary tariff pauses with Canada and Mexico have provided some relief, China’s swift retaliation has added new layers of complexity. Meanwhile, Bitcoin struggles to regain momentum amid technical resistance and institutional interest in crypto ETFs grows, though Wall Street remains hesitant.

Following negotiations with President Donald Trump, Canada, and Mexico have agreed to implement measures aimed at curbing illegal immigration and drug trafficking into the U.S. In exchange, Trump has temporarily paused the 25% tariffs on Canadian and Mexican imports for 30 days. Canada committed to a $1.3 billion border security plan, including appointing a Fentanyl czar and reinforcing border patrols. Mexico also pledged to strengthen security efforts along its northern border. The news led to a sharp rebound in crypto markets, with Bitcoin and Ethereum recovering losses triggered by initial tariff fears. However, Trump cautioned that tariffs could still be reinstated if progress is not made in negotiations.

President Donald Trump’s newly imposed tariffs on Canada, Mexico, and China sent shockwaves through global markets, leading to significant sell-offs in both traditional and crypto markets. Bitcoin fell below $100,000, while altcoins like XRP and Cardano saw double-digit losses. Analysts now view Bitcoin as a risk-on asset, vulnerable to market uncertainty caused by economic policies like tariffs. While some investors see the dip as a buying opportunity, others fear prolonged volatility if the trade war escalates. Trump defended the tariffs, acknowledging short-term economic pain but insisting they would benefit the U.S. in the long run. Meanwhile, his own financial ventures also took a hit, with World Liberty Financial suffering a reported 21% decline in value.

Bouncing off the low of $91,079 on February 3, Bitcoin has struggled to gain momentum this time, primarily due to China’s retaliation against U.S. tariffs. This includes implementing trade measures such as levies on American goods and an antitrust investigation into Google. Currently, Bitcoin is trapped in a range-bound market, fluctuating between its all-time high of $109,899, reached on January 20, and the daily low of $88,919, marked on January 13.

Key technical indicators suggest a bearish outlook for Bitcoin. Prices have fallen below the 50-period Exponential Moving Average (EMA), indicating a negative sentiment that adds to the downward pressure. Additionally, the Momentum Oscillator shows values below the 100 baseline, while the Relative Strength Index (RSI) is below 50.

If bullish momentum develops, traders should look for key resistance levels at $101,492, $106,335, and $109,899. Conversely, if bearish pressure continues, important support levels are projected at $91,079, $88,919, and $83,516.

Cryptocurrency markets tumbled early Tuesday as China retaliated against U.S. tariffs with its own trade measures, including levies on American goods and an antitrust probe into Google. Bitcoin showed resilience, dipping only 1.3% to $98,934, while altcoins like Dogecoin and XRP led losses with declines of over 5%. China’s new tariffs, ranging from 10% to 15%, target U.S. coal, natural gas, oil, and agricultural equipment. The news also triggered declines in Nasdaq futures and commodities, adding to global market uncertainty as trade tensions escalated.

While crypto ETFs have been a major step toward institutional adoption, full-scale demand from Wall Street remains limited due to regulatory uncertainty. Experts predict crypto legislation could be finalized by late 2025 or early 2026, emphasizing the need for patience. Market volatility has also shifted, aligning more with Wall Street trading hours. Despite ongoing challenges, institutional interest is growing, particularly in blockchain’s 24/7 operations and instant settlements. Optimism remains high, with industry momentum, pro-crypto policymakers, and increasing political influence expected to drive further adoption.

As global markets navigate heightened uncertainty, trade tensions and regulatory shifts continue to shape economic trends. While Trump’s tariff pauses with Canada and Mexico offer temporary relief, China’s retaliatory measures have fueled further volatility. Bitcoin remains in a precarious position, facing technical resistance and broader market pressures. Meanwhile, institutional adoption of crypto ETFs is progressing, but full-scale Wall Street demand remains elusive due to regulatory hurdles. In the coming months, investor sentiment will hinge on geopolitical developments, market stability, and the evolving landscape of digital assets.