Trump announces new tariffs against Canada, striking a tough posture against its northern neighbor’s defiant attitude. Trump reiterated his call that the US annex Canada outright, thereby ending its independence.

Like previous announcements, this threat could be explosive for the crypto markets, but the tariffs may be priced in or not take effect. The more pertinent question is whether the US is about to enter a recession.

Trump Gets Tough on Canada Tariffs

President Trump’s planned tariffs have been wreaking havoc on the crypto market, and it looks like they aren’t done yet. At the beginning of February, Canada and Mexico managed to postpone them, significantly helping the crypto market. However, Trump is following through and is placing a new tariff on Canada:

“Based on Ontario, Canada, placing a 25% Tariff on ‘Electricity’ coming into the United States, I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all Steel and Aluminum coming into the US from Canada. This will go into effect tomorrow morning, March 12,” Trump claimed on social media.

Trump slightly edited the announcement after first posting it, clarifying that tariffs on Canada have a clear deadline. Trump also pointed to several other priorities in US-Canada relations: dairy sales, automobile manufacturing, military spending, and more. He finished with another call that the US should annex Canada outright.

This last demand, a complete end to Canada’s national autonomy, has been a particular sticking point in the tariff saga. After the US passed tariffs against China, the nation retaliated with a few tariffs of its own.

Canada also retaliated, and this tough posture created a fresh wave of support for its ruling party.

This popularity surge is especially important. It prompted harsher rhetoric on Canada’s part, and Trump has responded in kind. With his new offensive, the situation is escalating. It seems difficult to identify a clear off-ramp for both parties.

What does all of this mean for the crypto market? These tariffs have spelled a consistent bearish outcome for the industry, with markets declining alongside fresh announcements.

Additionally, crypto liquidations are already high, and Bitcoin’s price is not doing well. New tariffs against Canada could have a severe impact.

However, the market was already falling before Trump announced the new tariffs against Canada. The broader macroeconomic outlook is looking pretty bearish, and these tariffs may not change much on their own.

The crypto community will need to closely follow this situation when/if the tariffs go live tomorrow, and their effects will be more legible then.

Ultimately, “if” is the operant word there. Since Trump already balked from implementing tariffs against Canada and Mexico before, he may blink again.

However, that situation is creating a lot of market uncertainty, which could be much more dangerous than any tariff. If the market loses its confidence, that will definitely affect the crypto market.

The most important question is whether a full-blown recession will happen soon. These tariffs against Canada may or may not actually occur, and if they do, Trump may roll them back within 24 hours.

At this chaotic moment, it’s difficult to say whether any single policy could change everything.

Bitcoin price started a fresh decline below the $86,000 zone. BTC is now correcting losses and might struggle near the $84,000 and $85,000 levels.

• Bitcoin started a fresh decline below the $85,000 zone.
• The price is trading below $84,000 and the 100 hourly Simple moving average.
• There was a break above a key bearish trend line with resistance at $82,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start another decline if it fails to clear the $84,000 resistance zone.

Bitcoin Price Faces Resistance

Bitcoin price started a fresh decline below the $85,000 level. BTC traded below the $82,000 and $80,000 support levels. Finally, the price tested the $76,500 support zone.

A low was formed at $76,818 and the price recently started a recovery wave. There was a move above the $78,000 and $80,000 resistance levels. The bulls pushed the price above the 23.6% Fib retracement level of the downward move from the $91,060 swing high to the $76,818 low.

There was a break above a key bearish trend line with resistance at $82,000 on the hourly chart of the BTC/USD pair. Bitcoin price is now trading below $84,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $83,200 level. The first key resistance is near the $84,000 level.

The 50% Fib retracement level of the downward move from the $91,060 swing high to the $76,818 low is also near $84,000. The next key resistance could be $85,000.

A close above the $85,000 resistance might send the price further higher. In the stated case, the price could rise and test the $86,500 resistance level. Any more gains might send the price toward the $88,000 level or even $96,200.

Another Drop In BTC?

If Bitcoin fails to rise above the $84,000 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $81,200 level. The first major support is near the $80,000 level.

The next support is now near the $78,000 zone. Any more losses might send the price toward the $76,500 support in the near term. The main support sits at $75,000.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $81,000, followed by $80,000.

Major Resistance Levels – $84,000 and $85,000.

The SEC delayed several ETF applications today, specifically targeting those based on Solana, XRP, Litecoin, and Dogecoin. The Commission has faced recent criticism for its pro-crypto actions, and this may help buy it some time.

Nonetheless, it also acknowledged fresh applications shortly before delaying this group. Many of these filings came from the same issuers or applied to the same cryptoassets as the first group.

SEC Delays Altcoin ETFs

The SEC has been undergoing many changes recently, which has prompted a wave of altcoin ETF applications from several potential issuers.

The Commission began acknowledging these applications, creating a series of deadlines to either approve or reject them. Today, the SEC punted on a tranche of applications, delaying proposals for Solana, XRP, and others.

In total, the SEC delayed approval for six different ETFs based on Solana, XRP, Litecoin, and Dogecoin. The acknowledged Solana ETF applications previously had a deadline set for today, and this extension gives the Commission a chance to consider the matter more fully.

By contrast, the XRP ETF, did not have an SEC deadline until several months from now. The Commission delayed applications from Canary and Grayscale but not Bitwise; this final proposal is the most recent of the three.

Bizarrely, the Commission acknowledged another application on its website today, an XRP ETF prospectus filed by Franklin Templeton.

In other words, the Commission’s rationale here is a bit difficult to understand. Even as the SEC delays several ETFs, it’s also acknowledging several fresh ones.

“Yes, the SEC just punted on a bunch of alt coin ETF filings including Litecoin, Solana, XRP & DOGE. It’s expected as this is standard procedure & Atkins hasn’t even been confirmed yet. This doesn’t change our (relatively high) odds of approval. Also note that the final deadlines aren’t until October for these,” wrote ETF analyst James Seyffart.

In addition to Franklin Templeton’s XRP ETF, it also recognized a Dogecoin ETF application and another based on Hedera.

There is one possible explanation for the SEC’s choice to delay ETF proposals. Approving fresh altcoin ETFs would significantly shake up the market, and it’s already in a moment of chaos.

The Commission is short a member until its new Chair gets confirmed by the Senate, and it may already be delaying other actions until this happens.

“Eth staking and in-kind also delayed. Everything delayed. It’s like the NYC-bound Amtrak on monday morning: Mechanical issues in DC,” wrote analyst Eric Balchunas.

One of the SEC’s Commissioners has dramatically broken with precedent to directly criticize its new pro-crypto turn, and the Commission has continued taking bold actions since.

If the SEC approves these altcoin ETFs immediately, it might invite further fractures of this nature.

Of course, the Commission hasn’t explicitly stated any of its intentions on this matter. The SEC took its time to consider ETF applications under Gary Gensler thoroughly, and the trend may simply be continuing.

One thing does seem clear, however. With this many postponements in one day, any new altcoin ETF approvals might take several more months to come.