Introduction

This report summarizes the Web3 industry policies and macro events that occurred over the past week. On February 1, the U.S. government announced the imposition of tariffs on Mexico and Canada, which caused significant volatility in the cryptocurrency market. On February 3, former President Donald Trump agreed with the President of Mexico to suspend the anticipated tariffs immediately. On the same day, an Oklahoma legislator proposed the Bitcoin Freedom Act, which is currently under review at the 60th legislative session. On February 5, Goldman Sachs and Wells Fargo predicted that the Federal Reserve would cut interest rates twice this year.

Summary

• February 1 — The U.S. government announced the imposition of tariffs on Mexico and Canada, causing significant volatility in the cryptocurrency market.
• February 3 — Trump agreed with the President of Mexico to suspend the anticipated tariffs immediately.
• February 3 — Oklahoma legislator proposed the Bitcoin Freedom Act, which is under review at the 60th legislative session.
• February 5 — Goldman Sachs and Wells Fargo predicted that the Federal Reserve would cut interest rates twice this year.

Key Focus Events

February 1 — U.S. Government Announces Tariffs on Mexico and Canada, Causing Cryptocurrency Market Volatility

On February 1, the U.S. government announced a 25% tariff on imports from Canada and Mexico. President Donald Trump signed an executive order imposing a 25% additional tariff on imported goods from both countries and a 10% tariff on energy resources from Canada. The tariffs were set to take effect in four days. The White House stated that further retaliation from the U.S. could lead to an escalation of tariffs. The announcement caused a sharp drop in the cryptocurrency market, with Bitcoin falling to around $97,000, the lowest in over two weeks. Altcoins faced even steeper sell-offs, with DOGE dropping approximately 14%. This tariff decision added uncertainty to the global economy, potentially triggering trade tensions, supply chain disruptions, and a loss of market confidence, which led to a dramatic shake-up in the global cryptocurrency market.[1]

February 3 — U.S. Government Reaches Agreement with Mexico and Canada to Suspend Tariffs

On February 3, President Trump announced that the U.S. had agreed with Mexico and Canada to suspend the anticipated tariffs immediately. Trump shared on the “Truth Social” platform that he had spoken with Mexican President Claudia Sheinbaum, who agreed to send 10,000 Mexican soldiers to the U.S.-Mexico border. After Canadian Prime Minister Justin Trudeau announced a 30-day suspension of tariffs, Trump followed suit with a similar statement later that day. This development led to a temporary relief for the markets, especially regarding trade uncertainties.[2]

February 3 — Oklahoma Legislator Introduces Bitcoin Freedom Bill for Debate

On February 3, Oklahoma State Representative Dustin D. Devers introduced SB325, known as the Bitcoin Freedom Bill, for debate at the 60th legislative session. The bill would allow employees in Oklahoma to receive their salary in Bitcoin and permit businesses to accept Bitcoin payments. Devers stated, “With inflation eroding the purchasing power of Oklahoma’s hardworking citizens, Bitcoin offers a unique opportunity to protect income and investments. As Bitcoin continues to appreciate in value while the dollar’s value is diminished by Washington’s continuous money printing, Oklahoma must act to protect its people.” SB325 ensures that participation in Bitcoin payments would be entirely voluntary, respecting free-market principles and giving individuals, employers, and businesses the freedom to choose the payment method that best suits their needs.

February 5 — Goldman Sachs and Wells Fargo Expect Fed to Cut Rates Twice This Year

Goldman Sachs and Wells Fargo forecast that the Federal Reserve will cut interest rates twice this year. However, Morgan Stanley joined Barclays and Macquarie Bank in predicting that the Fed will only make one 25-basis-point rate cut, citing uncertainty caused by President Trump’s tariff policy. During its January policy meeting, the Federal Reserve had kept its benchmark overnight interest rate within the 4.25%-4.50% range during its January policy meeting, with Chairman Jerome Powell stating that further rate cuts depend on the Fed’s ability to progress in reducing persistent high inflation. There is currently a divergence in market expectations regarding the Fed’s rate cuts, and all parties should closely monitor inflation data and the Fed’s statements to gauge market trends better.

Conclusion

Several macroeconomic events impacted the cryptocurrency market from February 1 to February 7, 2025. This report comprehensively analyzes the key dynamics in both the cryptocurrency market and the broader economy. On February 1, the U.S. government announced new tariffs on imports from Mexico and Canada, causing significant volatility in the cryptocurrency market. On February 3, former President Donald Trump agreed with the President of Mexico to suspend the anticipated tariffs immediately. On the same day, an Oklahoma state legislator proposed the Bitcoin Freedom Act, which is being reviewed at the 60th legislative session. On February 5, Goldman Sachs and Wells Fargo predicted that the Federal Reserve would cut interest rates twice this year.


References:

1. BBC,https://www.bbc.com/zhongwen/articles/cjw41y6v7z2o/trad
2. CNN,https://edition.cnn.com/2025/02/03/world/sheinbaum-trump-tariffs-paused/index.html
3. Oklahoma Senate,https://oksenate.gov/press-releases/deevers-introduces-bitcoin-freedom-act-bring-oklahomas-economy-future
4. Jin10,https://xnews.jin10.com/details/161727

Gate Research
Gate Research is a comprehensive blockchain and crypto research platform that provides readers with in-depth content, including technical analysis, hot insights, market reviews, industry research, trend forecasts, and macroeconomic policy analysis.

Click the Link to learn more

Disclaimer
Investing in the cryptocurrency market involves high risk, and it is recommended that users conduct independent research and fully understand the nature of the assets and products they purchase before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.