#TrumpTariffs
The crypto market's recent crash is largely attributed to Donald Trump's new tariff plan, announced on April 5, which introduced a 10% universal import tax and higher rates on specific countries, including China. This move has sparked fears of a global trade war, causing investors to pull back from riskier assets like cryptocurrencies ¹.
*Key Factors Contributing to the Crash:*
- *Tariff Plan*: Trump's administration rolled out a 10% universal import tax, with steeper rates on the EU (20%), Japan (26%), and China (34%).
- *Global Trade War Fears*: The threat of a global trade war has led to increased uncertainty and shaken investor confidence.
- *Stock Market Wipeout*: On April 4, $3.25 trillion in global equities vanished, contributing to the panic.
- *Aggressive Liquidations*: Over $1.5 billion in long and short positions were liquidated in just hours, exacerbating the market downturn.
*Affected Cryptocurrencies:*
- *Bitcoin*: Plunged below $75,000, down nearly 10% on the day.
- *Ethereum*: Took a harder hit, down over 19%.
- *BNB*: Also experienced significant losses.
The crypto market's volatility is mirrored in the US stock futures, with S&P 500, Nasdaq 100, and Dow futures all experiencing significant drops. The long-term implications of Trump's tariff plan on the global economy and cryptocurrency market remain uncertain.