Bitcoin falls below $94K after Trump’s tariff announcement

US President Donald Trump’s announcement of 25% tariffs on aluminum and steel imports caused a temporary dip in cryptocurrency markets.

Trump revealed that the tariffs would apply to all aluminum and steel entering the US, escalating the ongoing trade conflict.

In addition, Trump mentioned that the US would impose reciprocal tariffs on countries that have higher import fees on US goods.

"If they are charging us 130% and we’re charging them nothing, it’s not going to stay that way," Trump stated.

Following the announcement, Bitcoin (CRYPTO:BTC) dropped below $94,000 but soon regained momentum, climbing back over $97,000, according to CoinMarketCap data.

Ether experienced a similar dip, reaching a low of $2,537 before recovering to $2,645.

The total cryptocurrency market capitalisation fell from $3.15 trillion to $3.10 trillion but bounced back to $3.13 trillion.

The Crypto Fear Greed Index, which tracks sentiment in the crypto market, has been stuck in "fear" territory for the past week.

On February 10, the index recorded a score of 43, slightly down from the previous day’s score of 46.

Trump also plans to introduce further tariffs on goods from the EU, including superconductors, oil, gas, and copper.

Earlier in February, Trump announced tariffs of 25% on Canada and Mexico, alongside a 10% tariff on China, resulting in significant market drops.

Crypto market liquidations are estimated to have ranged between $8 billion and $10 billion, according to Bybit CEO Ben Zhou.

While the crypto market showed signs of recovery after the February 3 pause in tariffs on Mexico and Canada, Trump has not ruled out reinstating the levies after the pause period.

At the time of reporting, the Bitcoin (BTC) price was $97,104.25.