Bitcoin and the broader crypto market show signs of uncertainty at the start of the week.
The past few weeks have seen Bitcoin and the broader crypto market unable to establish a clear direction, and the leading digital asset’s price action at the start of this week suggests more of the same.
In this article, The Crypto Basic takes a look at what is driving this uncertainty.
Trump Game
During Asian trading hours on Monday, February 10, the Bitcoin market continued to show signs of uncertainty after falling 1.2% from an opening price of around $96,500 to lows of $95,300, before recouping these early losses with a 2% rally to trade as high as $97,400 at one point.
The price stumble comes as the week looks set to usher in fresh economic headwinds for risk markets.
President Donald Trump has stoked market uncertainty by announcing plans to implement new tariffs this week on steel and aluminum. The president also intends to apply matching reciprocal tariffs to all countries charging tariffs on U.S. imports, which will affect major trading partners like Canada, China, Mexico, and the EU.
BTCUSD 4 hour candle chart Source TradingView
Recall that a similar announcement of tariffs last week sent Bitcoin as low as $91,000 and sparked the biggest single-day leverage trading wipeout in crypto history, as most altcoins suffered over 20% losses.
The market, however, stabilized after the president decided to halt the tariffs on China and Mexico for a month, following negotiations with the respective leaders of both countries and promises of tighter border security.
Whether the markets will see a similar U-turn this week remains to be seen. However, the seemingly erratic nature of these moves has investors on edge.
Concerns around these tariffs for risk assets like crypto come as it further complicates the Federal Reserve’s fight against inflation, as a trade war could send prices of goods soaring.
The central bank had already dampened 2025 liquidity expectations when it warned in December 2024 that it planned fewer interest rate cuts than previously expected, amid persistent inflation fears.
Last week’s weaker-than-expected jobs report may, however, offer investors some hope of a possible reversal in this stance.
