Bitcoin, Ethereum Drop on Donald Trump’s Latest Tariff Threats — Key Points to Watch This Week

US President Donald Trump’s vow to impose tariffs on all steel and aluminum imports triggered a downturn in the cryptocurrency market. Over the past 24 hours, Bitcoin (BTC) and Ethereum (ETH) have slipped approximately 0.80% and 1.75%, respectively.

Other top-ranking cryptocurrencies, including XRP (XRP), Cardano (ADA), BNB (BNB), and Solana (SOL), also dipped.

Key Takeaways From Trump’s Latest Tariff Threat

Trump plans to impose a 25% tariff on all steel and aluminum imports into the US, including those from Mexico and Canada.

Additionally, he announced plans to introduce reciprocal tariffs on countries that tax US imports, stating that these measures would take effect “almost immediately” after their official announcement. However, he did not provide further details.

The announcement marks the latest in a series of tariff threats from President Trump. These threats have targeted specific countries and industries and recently unsettled the crypto market, including the Feb. 3 rout that liquidated $8 billion to $10 billion worth of positions, according to ByBit CEO Ben Zhou.

However, uncertainty remains over whether he will follow through—while he previously imposed tariffs on China, he also announced and later paused similar measures against Canada and Mexico.

Tariffs can make imported goods expensive in the US, leading to higher inflation. Higher consumer prices may prompt the Federal Reserve to keep interest rates higher for longer periods.

Risk assets generally thrive during lower-rate periods, so Bitcoin, Ethereum, and other cryptocurrencies have reacted negatively to Trump’s tariff threats.

According to CME data, bond traders see only a 6.5% probability of a 25 basis point rate cut in the Fed’s next meeting on March 19.

Bitcoin, Ethereum Weekly Analysis: Top Charts To Watch This Week

Bitcoin and Ethereum’s dips at the beginning of this week are part of its consolidation move after recovering from the Feb. 3 market rout. Let’s examine the trends in detail.

BTC/USD Holds Support Confluence Strong

The BTC/USD four-hour chart shows it consolidating above a support confluence comprising a multi-week ascending trendline floor and a Fibonacci retracement level at around $95,730.

If the ongoing consolidation trend sustains, the price will likely target the 50-4H exponential moving average (50-4H EMA; the red wave) near $98,000 by the weekend.

However, a breakout scenario above the 50-4H EMA appears less likely, as the broader market is still reeling from the pressure of Trump’s tariffs. Instead, one can expect BTC/USD to return toward the support confluence below $96,000 by the weekend if the pair retests $98,000 time before.

Bitcoin’s open interest has dropped by approximately 7% since February 3, falling to $58.44 billion. This decline suggests a reduction in leveraged positions, potentially signaling caution among traders.

Despite the drop in open interest, Bitcoin’s weekly funding rate remains positive at 0.084%, significantly lower than the local peak of 1.90%. A positive funding rate typically indicates that long traders are paying a premium to short traders, reflecting a bullish bias, albeit weaker than previous highs.

At the same time, Bitcoin has experienced over $711 million in net liquidations since Feb. 3. Of the total liquidations, $491.37 million came from long traders, indicating that many were caught off guard by recent price movements.

The wave of liquidations has flushed out excessive leverage from the market, reinforcing BTC’s consolidation setup potential for this week without a clear market bias.

ETH/USD is Forming a 25% Drop Setup — But Weekly Outlook is Stable

Ethereum price is consolidating within a bear pennant pattern, a technical setup that typically signals a continuation of the prior downtrend.

The structure follows ETH’s sharp drop earlier this month and is characterized by converging trendlines, suggesting a potential breakdown. The move could send ETH toward $1,944 if confirmed, marking a 26% decline from current levels.

However, signs of accumulation could invalidate the bearish scenario. According to CryptoQuant, Ethereum accumulation addresses recorded a single-day inflow of 883,000 ETH (~$2.3 billion) on Feb. 7, the largest in over a year.

The spike suggests that large holders are buying the dip, potentially preventing further downside.

Therefore, an event of Ethereum’s rebound from the pennant’s lower trendline this week could lead its price to the upper boundary at around $2,770, coinciding with the 50-4H EMA (the red wave).

Ethereum futures data, like Bitcoin, enforces a consolidation outlook, with open interest down 25% since the Feb. 3 rout, positive funding rates, and massive liquidations.