The crypto tariff crisis refers to the market turmoil triggered by US President Donald Trump's announcement of new tariffs on imported goods from China, Canada, and Mexico. This move sparked fears of a global trade war, leading to a sharp decline in cryptocurrency values ¹.
*Key Events:*
- *Tariff Announcement*: Trump announced 10% tariffs on Chinese goods and 25% on imports from Canada and Mexico.
- *Market Reaction*: Bitcoin plummeted to $92,000, reflecting an 8% loss, while Ethereum dropped 24% to $2,300.
- *Liquidations*: The crisis resulted in $2 billion in leveraged liquidations, with significant losses among traders holding long positions.
*Impact on Crypto Market:*
- *Increased Volatility*: The tariffs introduced uncertainty, causing investors to flee riskier assets like cryptocurrencies.
- *Inflationary Pressures*: Economists warn that tariffs could exacerbate inflation, leading to increased consumer costs.
- *Shift in Investor Sentiment*: Investor sentiment turned bearish, with many altcoins experiencing double-digit losses ² ¹ ³.
*Expert Insights:*
- *Wintermute CEO Evgeny Gaevoy*: Attributes the crypto crash to traditional financial events, such as Trump's tariffs.
- *Ryan Lee, Chief Analyst at Bitget Research*: Believes the downturn is driven by escalating concerns over a potential global trade war.
- *Binance's CEO Richard Teng*: Remains positive, seeing the downturn as temporary..
