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.” Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter . Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter . Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more. The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.
