The global market holds its breath as cryptocurrencies stage a terrifying roller coaster ride, with a financial drama more thrilling than Hollywood unfolding.
On July 4, U.S. Independence Day, as fireworks lit up the night sky, President Trump dropped a 'tariff nuclear bomb' on the global market: 'Starting today, we will issue an ultimatum to stubborn countries, with new tariffs as high as 70%, to be enforced on August 1!' The news caused an immediate bloodbath in the cryptocurrency market.
Dogecoin plummeted 5%, Bitcoin broke through the $107,000 defense line, and millions in liquidation orders filled the exchange's main screen within an hour. Panic spread like a plague — is this a replay of the April 'tariff massacre' (Bitcoin fell 15% to $74,500)?
Countdown to Death Begins; Tariffs strike the globe hard.
Trump's 'last 72 hours' strategy is cornering global trade. July 9 is the deadline for the tariff suspension, and the U.S. government has launched a 'high-pressure offensive' — more than 12 tariff notification letters are flying to various capitals, with rates ranging from 10% to 70%, targeting nations that refuse to back down.
Treasury Secretary Besant nakedly threatened on CNN: 'Want to escape high tax rates? Sign now! Otherwise, prepare to be swallowed by a tsunami of tariffs on August 1.' EU Commissioner Šefčovič negotiated overnight in Washington, trying to pry concessions from the U.S. before the deadline. Cambodia and Vietnam have already 'surrendered,' becoming the first signatory countries in Southeast Asia.
The market nerves have been stretched to the limit — Bloomberg observed that Bitcoin option implied volatility surged 40% within 48 hours, and leveraged traders frantically bought expensive insurance to hedge against 'Trump risk.'
72 Hours of Crypto Market Panic; Roller Coaster Market Review
When Trump's tariff tweet was released, $30 billion in cryptocurrency market value evaporated instantly. This is not a magical plot, but a brutal daily reality for the crypto space in 2025. Tariff policies have evidently become a 'Sword of Damocles' hanging over the crypto market.
Lightning Crash: On the morning of July 5, DOGE fell below $0.12 within five minutes, and $1.5 billion in long BTC futures were liquidated, the leverage blade stained with blood.
Counterattack: The hint of 'agreement nearing' from Besant triggered Bitcoin to soar to $109,000 late at night, leaving shorts pierced through by a thousand arrows.
Historical Ghost: Looking back at February's Canadian tariff decree, Bitcoin fell 9.3% in a single day, and the global tariff panic in April sent BTC into the abyss of $74,500.
This turmoil exposes a deep transformation in the cryptocurrency market: once a 'lawless land,' crypto assets have now become puppets of macro policies. The correlation between BTC and the S&P 500 has surpassed 0.7, meaning that a sneeze on Wall Street leads to a severe cold in the crypto market.
Deep Tear; Growing Pains of the Crypto Market's Coming of Age
The tariff storm is reshaping the genetic chain of the crypto market. While traditional financial markets fall into 'stagflation panic' due to the trade war, the safe-haven halo of cryptocurrencies is fading faster.
Gold surged 23% vs. Bitcoin plummeted 28% — traditional safe-haven assets are draining funds from the crypto space.
Regulatory Iron Fist: The U.S. Treasury froze $1.2 billion in on-chain assets suspected of evading tariffs, and the fantasy of decentralization suffered a heavy blow.
Mining Crisis: Chinese mining machines face a 17% tariff cost surge, Bitmain's S21 production delayed, and the hash power landscape is forced to be restructured.
Even more brutally, structural reshuffling — institutional holdings have surpassed 60%, and giants like BlackRock control pricing power through ETFs. When a single tweet from Trump can wipe out hundreds of billions in market value, the crypto market's 'holy grail of decentralization' is showing cracks.
Ultimate Game; The Wealth Code Under the Wings of the Black Swan
Top players are already laying out their strategies for the next bull market amid panic. On-chain data reveals the truth: whale addresses (holding >1000 BTC) swept up 213,000 Bitcoins during the March tariff easing period, setting a quarterly accumulation record. Currently, the market hides three major turning engines:
Inflation Rocket: Tariffs push U.S. consumer annual spending up by $2,000, and the Bitcoin 'digital gold' narrative may make a comeback.
Interest Rate Bomb: TD Securities predicts the Federal Reserve may cut rates as early as June, cheap liquidity will flood the crypto market.
Stablecoin Siphon: USDT issued 1.8 billion coins in one day, off-market funds are 'loading bullets.'
Hedge funds are playing the 'tariff hedging trio': going long on gold ETFs + Bitcoin call options + shorting currencies of tariff-sensitive countries. This multi-dimensional offense and defense is becoming the survival rule for top players in 2025.
When EU Commissioner Šefčovič burst out of the negotiation hall on July 6, shouting at reporters 'The next 72 hours will be very crowded,' Bitcoin suddenly surged violently past $109,000 — this is both a signal flare in despair and a horn for a new round of wealth distribution.
Those whales who bottomed Bitcoin during the April tariff panic have seen their holdings yield over 45%. Meanwhile, retail investors who were liquidated can only lament on social media: 'A tweet from Trump drained three years of my hard-earned money.' History keeps repeating itself: every time a black swan flaps its wings, it marks the intersection of the collapse of the old gods and the coronation of the new kings.
When the tariff hammer truly falls on August 1, the market will ultimately understand: in the smoke of the fiat currency world, Bitcoin is both the hostage and the savior.
Market Storm, Strong Players Unite! Top-tier seats are now open, limited to ambitious and crazy players to seize!