The cryptocurrency market displayed unexpected stability following former President Donald Trump’s announcement of a sweeping 10% tariff on all imports into the United States. Despite parallels to earlier periods of heightened economic tension, the response from digital asset traders was marked by caution rather than chaos, avoiding significant price fluctuations.
This new tariff initiative by Trump aims to protect the American economy, introduced in the wake of a Supreme Court decision that curtailed the administration’s emergency economic powers. The decision to impose a broad 10% import tariff reflects a continuation of Trump’s assertive trade policies, this time underpinned by a new legal context demanding legislative backing. As such, the comprehensive nature of this tariff differentiates it from previous trade measures imposed during Trump’s previous administration.
Despite Trump’s announcement, leading cryptocurrencies like Bitcoin and Ethereum experienced minimal volatility, with Bitcoin remaining near $67,800 and Ethereum close to $1,960. The aggregate cryptocurrency market value hovered around $2.33 trillion, demonstrating only minor shifts in response to the tariff policy. This lack of significant movement suggests a prevailing sentiment of prudence among market participants rather than panic.
The subdued reaction diverges from past instances where global trade tensions triggered significant activity in risk-sensitive assets. Major cryptocurrencies, such as XRP and BNB, experienced negligible price changes, highlighting that traders were not motivated by fear-driven actions following the tariffs.
Historically, Trump’s administration has enacted similar tariffs on various imports, including imposing a 10% tariff on Chinese goods. However, the Supreme Court’s ruling emphasized the necessity of Congressional consent for such economic actions, reinforcing the importance of legislative oversight in matters of trade policy.
Blockchain data shows a 16% decline in Bitcoin wallets worth over $1 million since Trump’s latest term began, reflecting a significant drop in large holders’ numbers. Around 25,000 addresses fell below this mark, with major investors experiencing a 12.5% decrease. This suggests that while larger investors have shown resilience, smaller ones have faced more significant impacts.
The decision has attracted criticism, particularly from California Governor Gavin Newsom, who argued against the tariff’s fairness.
Gavin Newsom characterized the tariffs as an unfair burden on U.S. employees, emphasizing that any collected revenues ought to be returned.
The restrained reaction of the cryptocurrency market to Trump’s tariff declaration underscores a shift toward greater maturity or preparedness for uncertainty. Absent notable market disruptions, it seems digital asset traders are demonstrating an ability to confront economic policy shifts with increased composure.
