Market Turbulence Erupts Amid Trump's Tariff Threats

Investors grew anxious over President Trump's proposed tariffs, prompting a sell-off in stocks and cryptocurrencies. Bitcoin and Ether faced significant losses, influenced by the tariff announcement. The market's focus now shifts to U.S. consumer inflation data and potential interest rate decisions by the Federal Reserve.

Investors were rattled on Friday as President Donald Trump's proposed tariffs triggered a market sell-off, impacting risk-sensitive currencies and sending cryptocurrencies tumbling. On Thursday, Trump announced his intentions for a 25% tariff on Mexican and Canadian goods, alongside a 10% duty on Chinese imports, set to take effect on March 4.

This announcement led to a wave of selling in risk assets like stocks, significantly affecting cryptocurrencies. Bitcoin dropped 4.9% to just above $80,000, its lowest since November 11, while Ether plunged 8.8% to reach a 13-month low of $2,077. Both tokens were set for their weakest monthly performance since June 2022.

As the market gauges the implications of these tariffs, focus shifts to the U.S. consumer inflation data due later. Market strategist Fiona Cincotta highlights the potential impact of core PCE inflation on economic growth and inflation expectations. The tariff news has prompted discussions on possible interest rate adjustments by the Federal Reserve.