Cryptocurrency News: How Tariff Hike Policy Impacts BTC and ETH Prices

The wave of tariff decisions by the American president caused the expected shock in global markets. However, cryptocurrency news shows an unexpected picture: contrary to forecasts, digital assets demonstrated relative resilience. At the time of the announcement of the global tariff increase from 10% to 15%, Bitcoin was priced around $68,000, and Ethereum remained relatively stable. This contrasts with the typical crypto market reaction, where a significant sell-off usually occurs in such situations. Today, several weeks later, new data shows a different picture: BTC is trading at $73.72K with a 7-day gain of +4.67%, and ETH is at $2.32K with an impressive 7-day growth of +13.17%.

Why the cryptocurrency market reacted calmer than expected

Analysts note the paradoxical nature of the situation: usually, news of major macroeconomic shocks in crypto trigger mass capital outflows. This time, the market demonstrated greater resilience. The tariff increase announcement was justified as necessary to eliminate trade imbalances and support American industry. However, crypto trading did not react with the predicted collapse, suggesting a possible recovery of investor trust in digital assets as a hedge against macroeconomic instability.

Political context: from court rulings to new restrictions

The president’s statement on Truth Social revealed the essence of what is happening. He indicated that his previous attempts to introduce reciprocal tariffs in April were deemed illegal by the Supreme Court when applied under the Emergency Economic Powers Act. The new 15% rate is a legally vetted decision that the administration intends to implement. This means that the increased tariffs will remain in place for the coming months, creating a prolonged period of uncertainty for global trade and potentially for crypto markets.

UK expresses concerns: impact on transatlantic trade

William Bain, head of trade policy at the British Chamber of Commerce, quickly responded to the new decision. He said that an additional 5% tariff increase would create serious difficulties for British exporters, except for goods covered by the Economic Prosperity Agreement. Cryptocurrency news partly reflects these broader trade tensions: if traditional trade faces obstacles, investors may reallocate capital toward digital assets. Bain emphasized that tariff hikes are likely to slow international economic growth and negatively impact consumers in the US. He stressed the need for transparent and stable trading conditions for companies on both sides of the Atlantic.

Investment fund behavior: volatility and asset revaluation

Data from the last week of February revealed an interesting pattern in the behavior of major investment funds. US investors withdrew nearly $316 million from Bitcoin tracking funds, with only Friday (February 20) showing a positive inflow. Ethereum funds suffered even more, recording outflows exceeding $123 million. Leading asset managers, including BlackRock, Fidelity, and Grayscale, were among the main initiators of these withdrawals. Such behavior is typical during price declines when institutional investors shift into defensive mode.

Market dynamics: overall index of the crypto sector

Despite capital outflows from major assets, the broader crypto market showed minimal losses. Total3, the index of the total market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum, decreased by less than 1% on Saturday (February 21), settling around $713 billion. This indicates that alternative crypto projects continued to attract investor attention even as capital was moved out of the largest digital assets.

Stability despite difficulty: current state of crypto assets

Data from analysts at SoSoValue showed that despite ongoing withdrawals, investment funds maintain a significant volume of assets under management. The total net capital inflow reached nearly $54 billion, bringing the total net assets of crypto funds to $85.3 billion. This suggests that although tactical capital movements occurred, investors’ long-term positions remain positive toward the crypto sector. The latest crypto news, reflecting rising prices of BTC and ETH, confirm a recovery of optimism after February’s wave of asset revaluation.

Looking ahead: macroeconomic change and market adaptation

The combination of political uncertainty and constantly changing customs barriers creates a complex landscape for investors. However, the ability of the crypto market to absorb these shocks and recover demonstrates the sector’s growing maturity. Investors increasingly view digital assets as a standalone asset class, less correlated with traditional trade policy indicators than previously expected. As the administration announces new lawful tariff rates in the coming months, the crypto market is likely to continue adapting based on fundamental sector factors rather than solely macroeconomic fluctuations.