How should the crypto market respond to Trump's tariff policy?

Author: Ben Strack, Blockworks; Translated by: Tao Zhu, Golden Finance

Donald Trump is expected to impose corresponding tariffs on other trading partners after imposing a 25% tariff on steel and aluminum imports on Monday.

Bitcoin fell to around $95,000 after news of steel/aluminum tariffs, before rebounding above $98,000 in early Tuesday.

" This rapid recovery highlights the growing maturity and stability of digital assets, even when facing external economic shocks," Matt Mena, cryptocurrency research strategist at 21Shares, said in an email.

He noted that during the previous weekend, the cryptocurrency price fell about 5-10% from yesterday's level during the tariffs announced by Canada and Mexico

• indicating "market confidence has increased."

In fact, Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said in an ET report Tuesday morning that the U.S. markets “strike strong” later yesterday. Nevertheless, he noted that tariffs allowed investors to “be prepared to deal with the impact, and futures fell this morning.”

Britzman added that history shows that the fear of trade wars caused by the tariff threat often comes and goes quickly.

“But this time, smart investors are not that sure; currency, bond and commodity traders are hedging their bets, and as tensions heat up, U.S. Treasury yields and gold prices climb,” he explained.

LMAX Group currency strategist Joel Kruger believes that the story is more about the market re-familiarity with Trump’s strategy than any substantial risks associated with extreme tariff measures.

He told me: “While the new announcement may bring short-term volatility, we do not think this risk will cause any significant shock from now on and crypto assets are expected to continue to be subject to medium- and long-term players seeking to buy on dips Good support.”