Trump’s Latest Tariffs Create Uncertainty for Bitcoin, Ether, and Dogecoin Investments

ETH, DOGE Price Trends: How Trump’s Tariffs Could Shake Cryptos Like Ether and Dogecoin

A fresh round of tariffs announced by U.S. President Donald Trump and a lack of short-term market triggers have led to cautious sentiment among traders, with Ethereum’s ether (ETH) potentially facing increased volatility.

On Sunday, Trump unveiled plans for a 25% tariff on all steel and aluminum imports into the U.S., in addition to already existing duties. This will be followed by reciprocal tariffs on all countries later this week. This rhetoric, along with rising inflation fears, has sparked concerns of market instability, with indicators that previously predicted a bitcoin price surge now showing bearish signals.

In early Monday trading, major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana’s SOL, and Dogecoin (DOGE) showed little movement. At the same time, U.S. futures, including the Dow and S&P 500, were up by 0.46%, indicating a slight recovery. In the last 24 hours, Bitcoin, Ether, and Dogecoin saw gains of under 1%, while BNB Chain’s BNB lost 4.5% following a rally on Sunday.

The introduction of tariffs raises economic uncertainty, potentially escalating trade tensions, which could lead to increased market volatility. Historically, these kinds of events have prompted investors to seek safety in less risky assets, which often leads to sell-offs in riskier markets like cryptocurrency.

Among these assets, Ethereum is under particular scrutiny. The crypto market’s overall sentiment towards Ethereum remains weak, as reflected by a drop in the Bitcoin-to-Ethereum ratio, which recently plummeted to 2021 levels. This signals a preference for Bitcoin over Ether and indicates that ETH could face further losses.

“Bitcoin’s dominance over altcoins like ETH is becoming increasingly clear. Ethereum’s outlook has weakened significantly, with ETH down 23% year-to-date, while Bitcoin is up by 2.5%,” said Augustine Fan, head of insights at SignalPlus.

Fan went on to explain that the lack of significant Layer 1 (L1) upgrades or narrative developments for Ethereum will likely continue to hinder its price growth. Ethereum’s struggles have been compounded by the reversal of its November 2024 pump, unwinding gains for investors.

Meanwhile, inflation concerns are also weighing on risk assets, as traders are betting on only one interest rate cut from the Federal Reserve this year. This further dampens the outlook for cryptocurrencies like Ethereum.

Traders at QCP Capital, based in Singapore, are expecting significant market fluctuation in the coming weeks, with Trump’s remarks continuing to stir the markets. “We’re seeing a feedback loop forming, where Trump, highly responsive to market movements, could escalate tensions further, adding another layer of volatility,” the firm said in its Monday message.

“Currently, BTC volatility skews towards downside protection, with little potential upside catalysts in sight until April,” they added.