Trump’s Tariffs Set to Impact Ether and Dogecoin as Market Volatility Rises
A new round of tariffs announced by U.S. President Donald Trump is creating uncertainty in the cryptocurrency market, with Ethereum (ETH) and Dogecoin (DOGE) among the assets most likely to feel the effects.
On Sunday, Trump revealed plans to impose a 25% tariff on steel and aluminum imports to the U.S., alongside additional tariffs later in the week for all countries. The move has already sparked concerns over inflation and a possible escalation of trade tensions, which could lead to heightened market volatility. On top of this, a crucial market indicator, which previously suggested Bitcoin would exceed $100,000 when priced under $70,000, has now turned bearish.
As of Monday afternoon in Europe, Bitcoin, Ether, XRP, and Solana’s SOL remained mostly unchanged, with minor upward movement in Dogecoin (DOGE) of less than 1%. However, Binance Coin (BNB) experienced a 4.5% drop after a recent rally. In contrast, U.S. futures saw slight gains, with the Dow and S&P 500 increasing by 0.46% ahead of the market open in New York.
The introduction of these tariffs adds another layer of uncertainty to global markets, which could push investors away from cryptocurrencies and toward safer investments. Historically, such events have created increased volatility in the crypto space, and analysts are particularly concerned about the impact on Ether. The crypto market’s risk appetite is diminishing, with Ethereum already struggling this year.
Ether’s performance has been sluggish, particularly when compared to Bitcoin’s recent gains. The Bitcoin-to-Ethereum ratio has plummeted to levels not seen since 2021, indicating a growing preference for Bitcoin over Ethereum. ETH is down by 23% year-to-date, while Bitcoin has gained about 2.5% over the same period.
“Ethereum’s difficulties are clear, especially given its recent reversal of gains from late 2024,” said Augustine Fan, head of insights at SignalPlus. “The lack of significant catalysts for Ethereum, particularly on the Layer 1 front, will likely continue to weigh on its price.”
The situation is further complicated by concerns over rising inflation and its potential effect on interest rates. With only one expected rate cut from the Federal Reserve this year, crypto assets like Ethereum may continue to face downward pressure, as investors pull back from higher-risk investments.
QCP Capital, a crypto trading firm based in Singapore, notes that markets may continue to flip-flop in the coming weeks due to Trump’s policies. “A feedback loop is forming where President Trump, aware of market reactions, could become more aggressive in his stance, adding even more volatility to the markets,” the firm stated in a broadcast on Monday.
With Bitcoin’s volatility currently skewed toward downside risks, the crypto market is looking at a challenging period until April, with few catalysts to spark significant upward movement.
