Trump imposes global tariffs
U.S. President Trump announced on April 2 that a 10% tariff would be imposed on all countries, with tax rates for China, the EU, and Japan soaring to 34%, 20%, and 24%, respectively. In a speech in the White House Rose Garden, Trump emphasized that this action aims to balance the "unfair taxation that other countries have imposed on the U.S. for a long time." Trump declared a "national emergency" in the United States.
Cryptocurrency market value evaporated by 5.3%, while U.S. stocks simultaneously lost $2 trillion in value
After the news was released, the crypto market briefly rose due to the 10% benchmark tariff, but then fell sharply as details emerged. $BTC Bitcoin dropped 2.6% from an intraday high of $88,500 to $82,876, reporting at $83,642 before the deadline.
$ETH Ethereum plummeted 6% from $1,934 to $1,797, reporting at $1,825 before the deadline. The overall cryptocurrency market value shrank by 5.3% to $2.67 trillion.
The "Crypto Fear and Greed Index" reflecting market sentiment has dropped to 25, entering the "Extreme Fear" zone. The traditional financial markets have also been severely impacted, with the S&P 500 index losing $2 trillion in market value in a single day, equivalent to a loss of $125 billion per minute.
Institutional perspective: Clarity on tariffs becomes a turning point for the market
Rachael Lucas, an analyst at Australia's BTC Markets, pointed out that there was a "relief of uncertainty" buying surge in the market before the tariff details were announced, but subsequently triggered sell-offs due to the tax rate exceeding expectations. She revealed that local trading volume surged by 46%, with large traders taking profits at high points, while retail investors remained on the sidelines.
David Hernandez, a crypto investment expert at 21Shares, believes that although the tariffs are higher than expected, the clarification of policies will help stabilize in the long term. "The market needs certainty, and institutions may target valuation compression opportunities in the coming days." He also warned that if China or the EU retaliates strongly, it could trigger a new round of panic selling.
