On Monday, the cryptocurrency market was in the spotlight due to sudden changes caused by the decision of the US President Donald Trump about doubles duties on the import of steel and aluminum up to 50%. This event caused a wave of uncertainty that affected the prices of cryptocurrencies and the mood of investors.
Price reaction
Bitcoin, which until recently, just over a week ago, celebrated a record level of USD 111,000, now costs around USD 105,000 – it is a 1% decrease in the last 24 hours. Ethereum (ETH) maintains a stable course of USD 2,600, without major fluctuations.
The total value of the cryptocurrency market has shrunk by 2.2%, reaching USD 3.38 trillion. According to the Couminggass platform, as a result of violent price movements, investors worth hundreds of millions of dollars were liquidated. The biggest losses concerned Bitcoin and Ethereum, which shows how much the market is sensitive to sudden changes.
What’s up in ETF funds?
On May 30, American ETF funds related to Bitcoin and Ethereum have recorded significant outflows of capital – as much as USD 616 million. However, at the same time, ETF funds based solely on Bitcoin attracted USD 70 million new investments, which indicates mixed moods among investors.
An interesting move was the action of Blackrock, which manages the Ishares Bitcoin Trust (IBIT) fund. Blackrock transferred to the Coinbase Prime 4 113 BTC platform, or about USD 429.4 million. Looconchain analysts have noticed that this was the first sale of Bitcoin by Blackrock for over a month, after a period of intensive shopping. Such a step may suggest that even large players on the market adapt their strategies in the face of new reality.
Despite the fact that part of their BTC was sold, there was a lot influence on ETF associated with ETH, which may mean the beginning of alt season. This is a very bullish signal for the Ethereum network and thus for all alts.
International duties and tensions
The main reason for the confusion on the market are new duties on steel and aluminum, which will come into force on June 4. President Trump announced them on Friday, at the same time criticizing China for alleged violation of commercial contracts. Truth Social wrote on his platform: “China, which is not surprising, broke our agreement. End of being kind!”. These words sharpened tension between the USA and China, which translated into anxiety in global markets, including cryptocurrencies.
Experts indicate that investors carefully follow Jerome Powell’s upcoming statements, the head of the federal reserve. His comments can shed light on how US monetary policy will affect markets in the near future. Paul Howard from Wincent emphasizes: “Variability on the cryptocurrency market is still relatively low. We expect that the price of Bitcoin will fluctuate between 100,000 and USD 110,000 in the coming weeks, but in the long run we are still optimistic”.
What does this mean for an ordinary investor?
For people who are just starting the adventure with cryptocurrencies, the current situation may seem complicated. New duties and international tensions make the market more unpredictable, but I think it’s not worth panic. Price fluctuations are normal, and long -term perspectives for cryptocurrencies, such as Bitcoin or Ethereum, still look promising. It is worth following messages, especially those regarding the decision of the Federal Reserve and US trade policy, because they can affect prices in the coming weeks.
