- Trump’s reciprocal tariffs spark economic uncertainty, impacting Bitcoin and major cryptocurrencies.
- Crypto whales accumulate BTC, signaling long-term confidence despite market volatility.
In a surprising turn of events that could redefine global trade dynamics, on the 7th of February, President Donald Trump announced that he planned to impose ‘reciprocal tariffs’ on multiple countries, with more details expected by the 10th or 11th of February.
He didn’t specify which nations would be affected, but his remarks hinted at a broad and aggressive strategy aimed at reshaping international trade in favor of the U.S.
“I’ll be announcing that, next week, reciprocal trade, so that we’re treated evenly with other countries. We don’t want any more, any less.”
Moreover, according to a Bloomberg report, the global tariff plan might have a particular focus on the European Union.
Impact on the crypto market
These aggressive trade measures have already sparked economic uncertainty, creating ripples across financial markets.
The impact on the crypto market was immediate, too, with major digital assets experiencing sharp declines.
Previously, when President Trump announced the initial tariffs, over $2 billion were liquidated in the crypto market as market-wide sell-offs hit Bitcoin, Ripple [XRP], Dogecoin [DOGE], Solana [SOL], and other major cryptocurrencies.
Commenting on this, a crypto investor known as ‘The Wolf of All Streets’ pointed out,
“$2B liquidated in 24 hours. That’s a record. More than the Covid dump. More than the FTX collapse. Epic.”
This historic liquidation underscored the vulnerability of cryptocurrency markets to geopolitical and macroeconomic shocks.
Now, with new reciprocal tariffs expected in a few days, the market is once again bracing for potential turbulence.
Execs remain bullish
While fears of a deeper crash loom, crypto whales appear unfazed, using the dip to accumulate more assets.
According to crypto analyst Ali Martinez, large investors have withdrawn over 70,000 BTC from exchanges in the past week, signaling unwavering confidence in Bitcoin’s long-term potential.
Source: @ali_charts/X
In a separate tweet, he further added,
“The best buying opportunities often come when crowd sentiment toward #Bitcoin $BTC is negative. Right now, sentiment suggests this could be one of those moments!”
This trend suggests that despite short-term volatility, institutional and high-net-worth investors continue to view Bitcoin as a valuable hedge against economic uncertainty.
Current market trend
That being said, despite recent turbulence, the crypto market is showing signs of resilience.
The global crypto market cap has climbed to $3.19 trillion, marking a 1.88% increase in the past 24 hours as per CoinMarketCap.
This upward momentum suggests that investor sentiment is gradually improving, potentially signaling a recovery in the coming days.
