Trump's tariff club strikes at chips, and amid alarms of soaring mining machine costs, a capital exodus sweeping global computing power has already begun.

‘If made in America, there will be no charges’—Trump's seemingly ordinary statement instantly caused global cryptocurrency mining costs to surge by 100%. On August 7, Eastern Eight Time, the boot dropped! The Trump administration announced approximately 100% tariffs on imported chips and semiconductors, marking another heavy blow following the 10%-41% tariffs imposed on goods from multiple countries in April.

The market is bleeding profusely. As news broke, Bitcoin fell below the $115,000 mark, and the total market capitalization of cryptocurrencies evaporated by over $300 billion in a single day. Leveraged players are left in ruins, with $800 million in liquidations in the derivatives market, and the fear index soared into the 'extreme fear' zone.

1 Policy Nuclear Explosion: The Mining Industry Strangulation Order Behind 100% Tariffs

Trump's tariff policy is by no means an isolated incident. It is a continuation of the 'America First' strategy for 2025—by April, the maximum tariff rate on goods from China had already reached 35%, and 67 countries globally are facing punitive tariffs of 15%-41%.

However, this chip tariff directly strikes at the heart of the cryptocurrency mining industry. It should be noted that 70% of mining machines are produced in China (Bitmain, MicroBT, etc.), while US mining farms account for as much as 40%. When the core components of mining machines face a 100% tariff, the cost calculations are alarming: the import cost of ASIC mining machines will soar by 50%-100%, and the investment return period for miners will be extended by more than 30%.

Mining farm owners are recalculating life-and-death accounts overnight. Texas miner Josh lamented in a Discord group: “The cost of Bitmain S21 mining machines will soar from $4,000 to $8,000, and the shutdown price for North American mining farms will rise from $78,000 to $93,000!”

2 The Great Mining Exodus: The Second-Hand Equipment Black Market and Geopolitical Arbitrage Wars

The survival instinct of the mining industry has been activated. The second-hand mining machine trading market has suddenly become hot, with refurbished machines commanding a 25% premium. Some miners are turning to localized production to meet the exemption condition of '20% US components'.

A more intense migration of computing power is underway. Kazakhstan mining pool operator Ivan revealed: “This week, three North American mining companies have signed contracts to migrate their computing power to Central Asia, with the advantage of $0.03 electricity costs combined with zero tariffs, leading to a 40% drop in costs.” Meanwhile, Latin America has become a new hotspot, with MicroBT's newly established assembly plant in Paraguay receiving a large number of orders from the US.

The 'de-China' strategy of mining machine manufacturers is being forced to accelerate. Bitmain is urgently expanding its production capacity in Malaysia, and Canaan Technology has signed a 3nm chip foundry agreement with TSMC's Arizona plant, but these distant waters cannot save the near fire—new supply chains will take at least three months to restructure.

3 Market Chain Reaction: ETF Bloodshed, Stablecoin Under Currents

Institutional capital is staging a massive retreat. The US spot Bitcoin ETF has seen capital outflows for three consecutive days, with a single-day loss of $333 million on Monday, and BlackRock's IBIT has experienced its first net redemption. The CME Bitcoin futures open interest has plummeted to its lowest since May, and the leverage fund exposure has shrunk to 45,580 BTC, indicating a clear defensive posture in the market.

Stablecoins, however, unexpectedly emerged as winners. The USDT premium in Argentina's over-the-counter trading has returned to 30%, while the P2P market in Nigeria has a premium of 22%. ‘When traditional cross-border payments are hindered by tariffs, stablecoins are becoming the new blood vessels of trillion-dollar trade,’ Chainalysis data shows that the cross-border settlement volume of USDC has surged by 190% since April.

The more hidden battlefield is on-chain. A developer of a certain DeFi protocol revealed: “After the tariff policy, the demand for companies to borrow USDC through Aave to procure tariffed goods has surged, with the borrowing rate for real-world assets (RWA) exceeding 18%.”

4 The Collapse of Digital Gold Narrative? The Cruel Truth of High Beta Assets

While gold has risen 18% this year due to safe-haven demand, Bitcoin has plunged 32% amid the tariff storm, with its correlation to traditional assets soaring to 0.789. The judgment of Professor Lin Chen from Hong Kong University is being validated: “Bitcoin has become a high Beta tech stock.”

The double-edged sword effect of spot ETFs is becoming apparent. The entry of giants like BlackRock has deeply bound Bitcoin to the traditional financial system—US Treasury yields, the dollar index, and Federal Reserve policies have become new price manipulation lines. When the Nasdaq plunged due to tariff panic, Bitcoin also dropped 6%, and the so-called 'safe-haven property' vanished.

But history always breeds turning points amid bloodshed. During the trade war from 2018 to 2020, Bitcoin ultimately surged from $3,700 to $13,000. Alpha Impact analysts point out: “The current crash may be the labor pains of digital gold transforming into trade infrastructure.”

Decisive Moment: Three Major Events Set the Tone for August's Life-and-Death Situation

This week's crash is just the prologue; the real showdown will occur in the next two weeks:

August 12 marks the expiration of the China-US tariff truce: If negotiations break down, a global trade nuclear bomb will detonate.

US CPI/PPI data from August 13-14: Core PCE has reached 2.8%, and exceeding expectations will strengthen the crypto anti-inflation narrative.

August 21-23 Jackson Hole meeting: A dovish turn by global central banks may become a lifeline for risk assets.

Miners have entered extreme survival mode. Some mining farms have initiated a 'dump coins to save machines' strategy, increasing daily selling volume to three times the usual amount, further suppressing coin prices. However, smart whales are quietly accumulating below $112,000, with on-chain data showing that a certain whale address has increased its holdings by 2,137 BTC this week.

Amid the cracks of dollar hegemony, a new order is emerging. As the US builds a high wall for chips with 100% tariffs, Paraguay's mining machine factories are brightly lit, and USDT trading volume on the streets of Argentina has surpassed that of legal currency. The annualized interest rate in Aave's RWA lending pool has soared to 18%.

Old Zhu summarizes:

Don’t be fooled by the current bloodbath; historically, the fiercer the trade war, the crazier Bitcoin rises later! (Refer to how it multiplied several times from 2018-2020?) The current crash is just ‘labor pains’; surviving it may lead to a 'chip blockade forcing out a new global financial system—stablecoin settlements + DeFi lending + computing power migration’! Opportunities are always found where the cannon fire is loudest!

This is no longer the cryptocurrency market you are familiar with—when mining machines become pawns in geopolitical games, stablecoins turn into the new currency of trade wars, and decentralized finance evolves into a global clearing dark web, the old narrative is dead, and a new era must rise. History repeatedly proves: the most brutal crashes often nurture the most violent bull markets amid the flames.

Follow Old Zhu, who will disassemble the three major events of August at any time, helping you dig out gold in chaotic times!#美国加征关税