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:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

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.png

Research

Content Delivery Networks (CDNs) represent low-hanging fruit in a massive market ripe for Web3-driven disruption. The global CDN market was valued at ~$28B in 2024, and is projected to surpass $140B by 2034, (18.75% CAGR) underscoring the immense demand for efficient content delivery.

article-image

Sponsored

Injective is not waiting for the future of finance. It is bringing it directly to us, today.

article-image

Bitcoin has been bullish for nearly 1,000 days

article-image

Robinhood announced that it’s building an L2 and also plans to launch staking for US users

article-image

“We’re not really doing anything controversial,” said co-founder Zak Folkman at Permissionless last week

article-image

Why equities are more stable than in past decades, plus advice from Peter Lynch

article-image

As Permissionless speakers talk on-chain RWA potential, tokenized stock platform Dinari secures FINRA broker-dealer approval