How crypto markets are handling tariff updates

History suggests tariff threat-fueled trade war fears often pass as quickly as they form, analyst Matt Britzman noted

article-image

PXLR Studio/Shutterstock modified by Blockworks

share


This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.


After implementing 25% levies on steel and aluminum imports Monday, Donald Trump was expected to follow that up with reciprocal tariffs on other trading partners. 

Bitcoin dipped to around $95,000 around the steel/aluminum tariff news, before rebounding back above $98,000 early Tuesday.

“This rapid recovery underscores the growing maturity and stability of digital assets, even in the face of external economic shocks,” 21Shares crypto research strategist Matt Mena said in an email.

During the Canada-Mexico tariff announcement the weekend prior, he noted, crypto prices dropped about 5-10% further than yesterday’s levels — indicating “market confidence has strengthened.”

Indeed, Hargreaves Lansdown senior equity analyst Matt Britzman said in a Tuesday morning ET note how US markets “put on a strong show” late yesterday. Still, the tariffs had investors “bracing for impact, with futures slipping lower this morning,” he noted.

History suggests tariff threat-fueled trade war fears often pass as quickly as they form, Britzman added. 

“But this time, the smart money isn’t so sure; currency, bond and commodity traders are hedging their bets, sending the dollar, Treasury yields and gold climbing as tensions heat up,” he explained.

LMAX Group currency strategist Joel Kruger argued that the story is more about the market getting reacquainted with Trump’s tactics than any material risk associated with extreme tariff measures. 

He told me: “While there could be short-term volatility on new announcements, we don’t see this risk causing any major shakeups from here on and expect crypto assets to continue to be well supported by medium and longer-term players looking to build exposure into dips.”


Get the news in your inbox. Explore Blockworks newsletters:

  • Blockworks Daily: The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
  • Empire: Start your morning with the top news and analysis to inform your day in crypto.
  • Forward Guidance: Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
  • 0xResearch: Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
  • Lightspeed: Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
  • The Drop: For crypto collectors and traders, covering apps, games, memes and more.
Tags

Upcoming Events

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (5).png

Research

Outside of stablecoins, the value of tokenized assets sits below $20B, dominated by the following asset classes: private credit, US Treasuries, commodities, institutional alternative funds, stocks, non-US government debt, and corporate bonds. In the coming months, we see the greatest opportunities in the tokenization of illiquid markets, particularly private equity. However, the successful integration of offchain assets into blockchain ecosystems relies heavily on clear and consistent regulatory frameworks, with purpose-built infrastructure to support it.

article-image

“Every asset manager and bank doing ‘crypto’ is earning insane fees for putting things ‘onchain,'” read a slide from Meltem Demiror’s DAS talk

article-image

The move from the national bank regulator came after increased pressure from Republicans

article-image

Industry leaders at DAS sounded off on the SEC’s approval of solana futures ETFs and how the crypto industry could expand into futures products

article-image

The decentralized-storage alternative to AWS or IPFS will launch its mainnet March 27

article-image

Bitcoin ETF outflows are leveling off, Ethereum’s price action is increasingly sentiment-driven, and TradFi’s role in crypto is expanding

article-image

The MicroStrategy founder understood digital scarcity long before Bitcoin, and it’s a story of bubbles, brokers and a “monster bull run.”