#TrumpTariffs ### **Trump’s Tariffs Ignite Crypto Carnage: The Real Story Behind the Crash**

**This isn’t a dip—it’s a systemic shock.**

**1. The Trigger: Trump’s Trade War Escalation**

- On **April 5**, the White House unveiled a **10% baseline tariff** on imports, with targeted spikes: **34% on China**, 26% on Japan, and 20% on the EU .

- **April 9 deadlines loom** for retaliatory measures, amplifying fears of a **global trade war**—a scenario markets hadn’t priced in.

**2. Crypto’s Brutal Reaction**

- **Bitcoin** nosedived **10%** to **$81,914** (now flirting with **$75K**), while **Ethereum cratered 19%** .

- **$1.5B+ liquidations** in derivatives (mostly longs) turned a sell-off into a **cascading crash** .

- **Correlation = Risk-Off**: Crypto’s behaving like a **high-beta tech stock**, not a hedge—mirroring Nasdaq’s **6% single-day collapse** .

**3. The Bigger Picture: Markets in Panic Mode**

- **Equities bled $3.25T** globally last week, with the S&P 500 posting its **worst day since 2020** .

- **Apple’s $640B wipeout** and Tesla’s **15% plunge** show tariffs hitting growth darlings hardest .

- **Safe havens surged**: Treasury yields fell as capital fled to bonds, while gold spiked .

**4. Why This Isn’t Just Noise**

- **Leverage unwinding**: Crypto’s **$2.2B liquidations** in February (during earlier tariff threats) foreshadowed this fragility .

- **Fed trapped**: Powell warned tariffs could **stoke inflation**, limiting rate-cut flexibility—a double-whammy for risk assets .

- **China’s retaliation**: Matching U.S. tariffs **34% vs. 34%** signals a protracted conflict .

**5. What’s Next?**

- **Watch April 9**: New tariff deadlines could **reignite selling**.

- **BTC $75K as litmus test**: A break lower risks **$70K–$65K** support.

- **Institutional pivot?** Binance’s CEO remains bullish long-term, but short-term pain is **policy-driven** .

**Bottom Line**: This crash is **macro meets leverage meets fear**. Trade wars rewrite rules—adjust or get liquidated.