Trump Doubles Steel Tariffs to 50%: Ripple Effects on Crypto Markets
After a pause since late April, U.S. President Donald Trump has once again escalated trade tensions with other countries through new tariff measures.
Following Bitcoin’s all-time high on May 22, Trump accused the European Union of imposing unfair trade barriers against the U.S. and announced a 50% tariff on EU imports effective from early June. After negotiations, the EU succeeded in persuading the U.S. to postpone the tariff implementation to early July to allow more time for resolution.
On May 30, Trump further accused China of violating a tariff agreement reached earlier in May, without providing specific details, but stated he would soon discuss the issue directly with Chinese President Xi Jinping.
Most recently, Trump declared he would double steel import tariffs from 25% to 50% to protect the American steel industry. This move also paves the way for a merger deal between U.S. Steel and Japan’s Nippon Steel, with the Japanese company investing $14 billion to rescue the iconic 120-year-old American steel manufacturer. Trump assured steelworkers there would be no layoffs or outsourcing, and each worker would receive a $5,000 bonus, emphasizing the administration’s commitment to domestic industry preservation.
TRUMP PROTECTS AMERICAN STEEL 🇺🇸
“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50%—the tariffs on steel into the United States of America—which will even further secure the steel industry in the United States.” –President Donald J. Trump 🇺🇸 pic.twitter.com/ASaAjXxLDE
— The White House (@WhiteHouse) May 30, 2025
This tariff escalation has sent shockwaves through financial markets, including cryptocurrencies. The announcement triggered volatility and instability in crypto markets, with Bitcoin and other major cryptocurrencies experiencing price fluctuations and increased market fear. The Crypto Fear & Greed Index dropped sharply, reflecting heightened investor anxiety. Experts note that while tariffs are traditionally trade issues, their ripple effects extend across equities, commodities, and crypto assets, which often behave like risk assets under such macroeconomic stress.
Previously, when Trump imposed 25% tariffs on steel and aluminum, Bitcoin briefly dropped but quickly recovered, illustrating the crypto market’s sensitivity to such macroeconomic shocks. The renewed and increased tariffs have intensified concerns about inflation, supply chain disruptions, and potential economic slowdown, all of which contribute to crypto market volatility.
In summary, Trump’s doubling of steel tariffs to 50% is part of a broader strategy to protect U.S. industry and reshape trade relations, but it is also causing significant macroeconomic ripple effects, particularly increasing volatility and uncertainty in cryptocurrency markets worldwide.
Altcoins Experience Widespread Sell-Off on the Final Day of May
While the U.S. stock market saw only a mild decline during trading on May 30, the cryptocurrency market—known for its heightened sensitivity to macroeconomic developments—turned sharply bearish on the morning of May 31.
Bitcoin Plummets to $103,000
After soaring to a new all-time high near $112,000 last Thursday, Bitcoin has struggled to maintain its upward momentum. The price began to retreat the following day, coinciding with U.S. President Donald Trump’s announcement of proposed new tariffs against the European Union.
Although the tariff implementation was postponed by more than a month following negotiations, Bitcoin failed to mount a strong recovery. It repeatedly faced resistance around the $110,000 level, with the most significant rejection occurring last Thursday at approximately $109,000. This triggered a sharp drop to $105,000.
Bitcoin briefly rebounded to around $106,000 yesterday, but bearish pressure quickly reasserted itself, pushing the price down further to a 12-day low just above $103,000. This decline followed Trump’s accusation that China had “violated” the recently agreed-upon trade deal, despite a relatively conciliatory response from Beijing. Notably, the liquidation of prominent trader James Wynn, who lost over $65 million in BTC and meme tokens during this crash.
Currently, Bitcoin has clawed back slightly to trade just above $103,500. Its market capitalization has decreased to approximately $2.06 trillion according to CoinGecko, while its dominance over altcoins has surged to 61.3%. Despite losing more than 7% from its May 22 record high, Bitcoin still posted a strong performance for the month, gaining over 9.5% and defying the traditional “sell in May” market adage.
Altcoins Suffer Heavy Losses
The most severe impact has been felt in the altcoin sector, where many major tokens have plunged between 10% and 20% within the last 24 hours. Some altcoins have even erased all of their gains made throughout May.
Ethereum is nearing a critical support level around $2,500 after dropping 4.5%. XRP has fallen below $2.15, while other prominent altcoins such as Dogecoin (DOGE), Solana (SOL), Cardano (ADA), Sui, Chainlink (LINK), and Avalanche (AVAX) have all declined by as much as 9%. The situation is even more dire for lower-cap altcoins, with tokens like ENA, INJ, VIRTUAL, and PEPE experiencing double-digit percentage losses. The only notable exception is Crypto.com Coin (CRO), which gained 17% over the past day and is currently trading near $0.11.
Overall, the total cryptocurrency market capitalization has shrunk by approximately $200 billion over the past two days, now standing at around $3.36 trillion. The derivatives market has also seen significant turmoil, with over $720 million liquidated in the last 24 hours—89% of which were long positions.
Hyperliquid Holding Above Critical Support: Volume Surge Signals Breakout
HyperLiquid has shown impressive resilience amidst the recent market-wide correction, maintaining its footing above a key support zone at $29.20. This strength suggests that bullish momentum remains intact. With the higher timeframe structure still bullish and a notable increase in trading volume accompanying the latest breakout, the potential for a continued upward move toward the $39 region is growing stronger.
Key Technical Highlights
- $29.20 – High Time Frame Support Zone: This level represents a critical confluence of technical indicators, including the VWAP, 0.618 Fibonacci retracement, and the Value Area High (VAH)—making it a strong base for potential bullish continuation.
- 34% Breakout Potential: If the $29.20 support level holds, a measured move points to a target around $39.10, reflecting a projected 34% increase in price.
- Volume Spike Confirms Breakout: A sharp rise in trading volume following the break above $29.20 validates the breakout. Maintaining or increasing volume levels will be essential for sustaining bullish momentum.
Since establishing a swing low, HyperLiquid has formed a clear bullish market structure, marked by a series of higher highs and higher lows. The recent rally saw price action recover from the Value Area Low (VAL), reclaim the Point of Control (POC), and reach the Value Area High (VAH)—before returning to retest the $29.20 support zone.
This current movement represents a textbook technical retest. The return to the breakout level has been accompanied by above-average trading volume, reinforcing demand and lending further confidence to the breakout’s legitimacy.
This behavior reflects strong accumulation interest. If volume remains elevated, it significantly increases the likelihood of a continuation toward the next resistance zone around $39.
Moreover, HyperLiquid’s outperformance during a market correction is a strong bullish signal. Assets that show strength while the broader market weakens often lead the next upward cycle. The current price structure is clean, technically valid, and shows momentum that could resume quickly—provided volume sustains or grows.
What to Expect Next in Price Action
If HyperLiquid continues to hold above the $29.20 support level and trading volume remains elevated, the bullish market structure will stay intact. Under these conditions, we can expect a potential rotation toward the $39 zone, implying a 34% upside from current prices.
However, should price break down below $29.20 with weakening volume, the setup would require re-evaluation. As it stands, though, technical indicators strongly favor a continuation to the upside, making this a key level to watch closely in the coming sessions.
Investors should watch for confirmation signals, such as sustained volume increases and price closing above resistance, to validate the breakout. Risk management remains crucial, given the overall market volatility.
