"Crypto Volatility Surges as Trump's Tariffs Loom; Bitcoin Plunges, Polkadot ETF Awaits SEC Nod; South Korea's Kimchi Premium Soars"

Crypto traders should brace for continued volatility as Trump prepares more tariffs, analysts warn. The cryptocurrency market is facing a renewed sense of unease, with the odds of a significant bitcoin (BTC) price correction increasing sharply amid escalating trade tensions and inflation concerns.

Prominent asset management firm 21Shares has filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Polkadot exchange-traded fund (ETF) in the country. The filing points out there’s no guarantee of Polkadot’s future price performance either in the short or long term and outlines specific risks associated with the Polkadot network.

South Korea’s so-called bitcoin kimchi premium has surged to a 10-month high amid the recent cryptocurrency market downturn, suggesting significant resilience in South Korean exchanges amid the sell-off. Data from CryptoQuant shows that the kimchi premium surged to 9.7% for bitcoin in the early trading hours of Monday, its highest level since April 2024, when it briefly surpassed 13%.

On February 1, Trump announced new tariffs on imports from Canada, Mexico, and China, set to take effect on February 4. The tariffs include a 25% levy on goods from Canada and Mexico and a 10% tariff on Chinese imports. Trump has stated that these measures are necessary to combat illegal immigration and drug trafficking, which he has labeled a national emergency.

The tariffs will apply to all imports except Canadian energy resources, which will face a reduced tariff of 10%. Goods already in transit before the announcement are exempt from these tariffs. However, economists warn that Trump’s planned tariffs could inflate prices across various sectors, including automobiles and food products. Affected businesses, in order to maintain profitability, often pass these increased costs along to U.S. consumers in the form of higher prices for the final products, which ultimately contributes to inflation.

Bitcoin, the largest cryptocurrency by market cap, plummeted to a low of $92,500 on Sunday night, according to CoinMarketCap data, after failing to hold above $100,000 as soon as tariff news surfaced. It is currently hovering around $93,000, down 6.5% in the last