- Trump’ “Make in America” campaign was ramping up trade restrictions, with a 25% import tax on key metals now in play.
- Will Bitcoin weather the storm – or is the crypto market bracing for even more downside?
The crypto market losing 12.19% of its market cap in February alone is no accident. The recent tariffs sent Bitcoin [BTC] down to nearly $92K. Now, Trump’s new 25% tariffs on key metals—steel and aluminum—are adding to the pressure.
With his “America First” strategy dominating the headlines, will investors hold strong for a rebound, or is this the start of a 2018-style crash that saw Bitcoin plunge by double digits?
Brace for a test of patience
Two months into 2025, Bitcoin has already seen two sharp drops, each cutting over 10% of its value and bringing it down from six figures to five.
The latest drop followed Trump’s high-stakes tariffs, triggering a surge in BTC deposits across all exchanges – soaring past 70K in a single day, the highest this year.
With uncertainty over the rate cuts, investors are de-risking, pulling back on high-leverage trades. And with a 25% import tax on steel and aluminum, the Fed’s 2% inflation target may be slipping further out of reach.
In the short term, Bitcoin has found support between $88K and $90K, attracting both institutional and retail buyers. But with so many moving parts, is the real BTC bottom still a long way down?
Source: TradingView (BTC/USDT)
Back in 2018, when Trump imposed a 10% import tax on Chinese goods, Bitcoin collapsed 72% by year-end. While a similar crash isn’t expected, the impact of tariffs on the crypto market can’t be ignored.
With the Fed hesitant on rate cuts, investor greed hanging by a thread, and Bitcoin’s historically bullish Q1 failing to spark FOMO, 2025 is shaping up to be a year when patience will be tested like never before.
So, are traders still betting on the Bitcoin-Trump duo?
Given the macro trends, expecting fresh capital to flow into the market may still be premature. As short-term holders (STHs) lock in profits after each dip, a strong HODL mindset may be the best play for now.
This dynamic explains Bitcoin’s current holding pattern – while HODLers and ETFs keep BTC above its local bottom, STHs are quick to cash out, and futures traders have closed over $8 billion in positions in just ten days.
Source: Coinglass
But how long can BTC stay in this cycle? Investors still back the Bitcoin-Trump duo, but confidence is being tested with each high-stakes trade policy.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
If this balance breaks, Bitcoin’s true bottom could still be far away. The key now is how the administration handles the fallout – High inflation, fewer rate cuts? Or the opposite?
The upcoming CPI report might have some answers. Watch closely – 25% tariffs on key metals may only be the start.
