The announcement by U.S. President Donald Trump of new tariff levels on April 2, referred to as "Liberation Day," is drawing attention from the global financial markets, including the cryptocurrency market.
- Market sentiment and price volatility: Uncertainty regarding tariff policies could increase risk-averse sentiment, leading to price volatility in the cryptocurrency market. In the past, Bitcoin and other digital assets have been regarded as "digital gold," attracting capital flows as a hedge against risks amid economic instability.
- Impact on capital flows and liquidity: Tariffs could affect cross-border capital flows, increasing demand for stablecoins like USDT or USDC for international payments. However, this could also lead to tighter scrutiny from regulatory bodies over the use of cryptocurrencies to avoid capital control measures.
- Mining costs and infrastructure: If tariffs impact the import of mining equipment or related hardware, the cost of cryptocurrency mining could rise, affecting the profitability of miners and potentially impacting the entire network.
Ahead of the upcoming tariff announcement, the cryptocurrency market has recorded a significant decline. Last week, the cryptocurrency market capitalization lost over $130 billion, with major coins like $BTC , $ETH , $XRP , SOL dropping sharply by 5~15%. Especially ETH 🤬
