US President Trump said at a joint press conference with visiting Japanese Prime Minister Kishida Shigeru over the weekend that he will announce action to impose "reciprocal tariffs" on multiple countries this week, causing Bitcoin prices to surge and then wash.
And on Sunday (9th) when he went to attend the NFL's annual Super Bowl championship game, he announced on Air Force One that starting on the 10th, he will impose a 25% tariff on all steel and aluminum imports to the US, including from Canada and Mexico.
At the same time, he reaffirmed that he may announce "reciprocal tariffs" on 2/11 or 2/12. (Meaning that any country that imposes high tariffs on US imports will also be subject to reciprocal tariffs by the US on its exports) He mentioned earlier:
I think this is the only fair way. This way no one gets hurt. They charge us. We charge them...I seem to be more inclined towards this approach rather than using a fixed fee or tariff.
Bitcoin rebounds after the needle
When Trump's renewed tariff war risk news came out, Bitcoin also saw increased volatility. Earlier, it briefly plunged to $94,705, but quickly V-shaped rebounded and broke through $97,000.
As of the time of writing, it is temporarily reported at $96,177, down 0.83% in the past 24 hours.
Major economic events this week
In addition to Trump potentially announcing the activation of reciprocal tariffs in the next few days:
- Fed Chair Powell will testify before Congress and deliver the Fed's semi-annual monetary policy report on Tuesday and Wednesday local time.
- The important US inflation data, the January Consumer Price Index (CPI), will also be released on Wednesday evening, so be prepared for potential volatility.
$220 million in liquidations in the past 24 hours
After the sharp drop in Bitcoin this morning, according to Coinglass data, over the past 24 hours, the total amount of cryptocurrency liquidations across the network reached $220 million, of which long positions accounted for $148 million, the vast majority, and short positions were over $80 million, with over 119,000 people being liquidated.
Further reading: Fed Mouthpiece: Trump's Tariffs Become a Source of Inflationary Pressure, Powell May Pause Rate Cuts
