#TrumpTariffs Here’s a breakdown of how Trump's tariffs are impacting the crypto market:
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📉 Short‑Term Impact
Risk-off market sentiment: Tariff announcements triggered sharp crypto sell-offs—Bitcoin dropped around 5–6%, Ethereum likewise fell 20% during peak turbulence. Investors fled to safe-haven assets like Treasurys and gold .
Mining pressure: Higher import costs for mining hardware and chips due to tariffs have squeezed miners’ margins, reducing hash rate and network resilience .
Volatility spikes: Policy whiplash—tariff impositions followed by pauses—has caused roller-coaster price swings and liquidations exceeding $450 million in crypto futures .
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💹 Medium‑to‑Long‑Term Effects
Weakening U.S. dollar outlook: Tariffs are eroding the dollar’s dominance, creating “space” for non‑sovereign assets like Bitcoin to act as alternative stores of value .
Potential Fed easing: Inflation pressure from tariffs could lead the Fed to cut rates sooner, flooding liquidity into crypto markets and supporting a rebound .
