Trump stated that tariffs will be imposed on "all countries" this week, a move that will trigger a series of chain reactions in the cryptocurrency market:
Fluctuation in Safe-Haven Asset Choices
Theoretically, Bitcoin has the safe-haven properties of "digital gold". When the traditional financial market experiences severe fluctuations due to tariffs, some funds may flow into Bitcoin seeking safety. However, due to the unclear regulation and high volatility in the cryptocurrency space, there is uncertainty about whether funds will flow into Bitcoin. If investors lack confidence in the cryptocurrency market, they will not choose Bitcoin as a safe haven even if the traditional financial market is turbulent, making it difficult for Bitcoin's price to find support.
Decline Linked to U.S. Stocks
There is a certain degree of correlation between U.S. stocks and the cryptocurrency market. If tariff policies impact U.S. stocks and they decline sharply, it will trigger panic in the market, spreading to the cryptocurrency space, leading to sell-offs of cryptocurrencies and causing prices to drop. For example, when U.S. stocks plummeted due to macroeconomic events, the cryptocurrency market also saw significant declines.
Risk of Project Development Being Hindered
Increased tariffs may lead to a contraction in global trade, affecting blockchain projects that rely on cross-border business and international cooperation. These projects may encounter obstacles in technology exchange, fundraising, and market expansion, impacting their development prospects and causing the value of related cryptocurrencies to decline.
Changes in Regulatory Policy Expectations
Trump's tariff policy may prompt governments worldwide to strengthen regulation of the economy and financial markets. Some countries may extend regulatory oversight to the cryptocurrency space, restricting activities such as cryptocurrency trading and mining, which would reduce market activity and put pressure on cryptocurrency prices.
