Crypto Markets Waver as Trump Tariffs Kick In, Traders Await Jobs Data

Cryptocurrency markets were volatile on Wednesday as President Donald Trump’s new tariffs on metals took effect and traders awaited U.S. labor data that could influence the Federal Reserve’s next interest rate decision.

At the time of writing, Bitcoin (BTC) is trading at around $105,000, down 0.6% over the past 24 hours. Ethereum (ETH), on the other hand, is up nearly 1% to $2,637. XRP is down 1% to $2.23 while Solana (SOL) dropped by 2.6% to $156.

The total cryptocurrency market capitalization dropped by 2.6% on the day to $3.43 trillion. Leveraged liquidations totalled approximately $205 million across 78,832 traders, according to CoinGlass. ETH liquidations accounted for around $52 million, followed by BTC liquidations at $40 million.

In the exchange-traded fund (ETF) sector, U.S. spot BTC ETFs attracted $378 million worth of inflows. Meanwhile, spot ETH ETFs recorded $109 million in inflows, according to SoSoValue.

Experts attribute the recent market volatility to a combination of factors, including uncertainty surrounding upcoming macroeconomic data, thin liquidity conditions, and mounting pressure from Trump’s latest tariffs.

At 12:01 a.m., Trump’s tariffs on imported steel and aluminum, which had previously been 10%, doubled to 25%. The move is the newest development in an ongoing trade war that has seen several tariffs introduced since February.

"As the crypto market digests recent developments, all eyes are on Friday’s U.S. employment report, which will provide fresh insights into Nonfarm Payrolls (NFP), the unemployment rate, and average hourly earnings,” said Dr. Kirill Kretov from CoinPanel. “Together, these data points will shape expectations for Federal Reserve policy, liquidity conditions, and overall risk appetite – factors that are crucial for the trajectory of BTC and ETH.”

Kretov noted that a weaker-than-expected NFP figure or a rise in the unemployment rate could signal a cooling labor market, increasing the likelihood of Fed rate cuts. “Such a scenario might boost risk appetite, driving investor interest toward Bitcoin and Ethereum,” he said. “On the other hand, stronger-than-expected wage growth could revive inflation concerns, potentially delaying Fed easing and putting downward pressure on crypto prices.”