Crypto Market Dips Further as Trump Announces Plans for “Reciprocal Tariffs”

President Donald Trump’s announcement of plans to impose reciprocal tariffs on multiple countries has added to the market’s fears, worsening already bearish sentiment.

The cryptocurrency market has faced another turbulent week, with prices sliding further amid growing economic uncertainty. Over the past seven days, the entire crypto market has lost more than 11% of its value, after Trump revealed plans to impose tariffs on countries including China, Canada, and Mexico.

Trump Tariff Shakes Crypto Market

On Friday, February 7, President Donald Trump revealed his intention to announce reciprocal tariffs on many countries next week. The recently inaugurated U.S. president made the revelation during a meeting with visiting Japanese Prime Minister Shigeru Ishiba at the White House.

He didn’t name specific nations, but he stressed this action ensures fair U.S. treatment in trade.

He told reporters, “I’ll announce reciprocal trade next week, so we receive equal treatment. We don’t want more or less.”

This announcement comes as part of Trump’s broader trade war strategy, which has already seen tariffs imposed on Canada, Mexico, and China.

The news has sent waves through the already bearish cryptocurrency markets. Investors, already wary of the ongoing trade tensions, reacted negatively to the potential escalation of tariff wars.

Crypto Market Reacts to Economic Uncertainty

The cryptocurrency market has always been particularly sensitive to macroeconomic happenings, and the threat of a tariff war has only added to the uncertainty. Over the past 7 days, the market has experienced a sharp decline, erasing gains from the initial rally spurred by Trump’s inauguration.

Market sentiment indices have reflected this shift, with fear dominating investor psychology by the end of the week. The overall market capitalization remained flat at $3.32 trillion in the past 24 hours, but volatility led to significant liquidations. About $307.73 million was liquidated from the crypto market in the past 24 hours according to data from Coinglass.

Bitcoin has not been immune to the market downturn. Over the past seven days, Bitcoin’s price has fallen by more than 6%, dropping below $97,000 from a 7-day high of over $102,000.

Meanwhile, Ethereum has seen its share of the total market capitalization fall to $314 billion—its lowest level in four years. The second-largest cryptocurrency slipped 2.73% in the past 24 hours, settling at $2,610 according to recent data from CoinMarketCap.