Overview
A fresh round of tariffs imposed by U.S. President Donald Trump is inciting caution from market watchers, with predictions that Ethereum’s Ether (ETH) may be particularly affected. Trump recently announced a 25% tariff on all steel and aluminum imports to the U.S. which could escalate trade tensions, leading to increased market volatility.
Key Points:
- The introduction of these tariffs brings economic uncertainty and potentially escalates trade conflicts.
- Market experts believe the sentiment surrounding cryptocurrencies like Ether may decline further, exacerbating an already challenging year for the asset.
Market Reactions
Crypto assets remained relatively stable during Monday’s trading hours, even as U.S. futures showed a slight upward trend. Bitcoin (BTC), Ether, XRP, and Dogecoin (DOGE) saw marginal price movements with less than a 1% change within the last 24 hours.
Caution in Pricing
Experts note that tariffs typically drive investors away from riskier assets, prompting them to seek safer investments. Furthermore, a struggling Ether could negatively influence associated cryptocurrencies like Dogecoin (DOGE). During this period, Augustine Fan, the Head of Insights at SignalPlus, remarked on the increased short-interest in ETH and the lack of significant catalysts for improvement.
“The rise of BTC compared to other cryptocurrencies is stark, with ETH down -23% year-to-date, while BTC gained 2.5%.” — Augustine Fan
Translation: “La subida de BTC en comparación con otras criptomonedas es notable, con ETH cayendo un -23% en lo que va del año, mientras que BTC obtuvo un 2.5%.”
Market analysts at QCP Capital anticipate further fluctuations in crypto markets as the implications of Trump’s comments unfold.
“A feedback loop is developing where President Trump is increasingly sensitive to market reactions, which may contribute to further volatility.” — QCP Capital
Translation: “Se está desarrollando un ciclo de retroalimentación en el que el presidente Trump es cada vez más sensible a las reacciones del mercado, lo que puede contribuir a más volatilidad.”
