US Tariffs, the Cryptocurrency Market is Shaking Intensely
The US has started to impose additional tariffs again, and this operation has not only made the traditional market nervous but has also left the cryptocurrency space on edge.
The first to be hit is the price plunge. As soon as the tariff news broke, investors were like startled birds, hastily selling off their cryptocurrencies. After all, most people in the crypto market are aiming for high returns, and with the global economic winds shifting, who would dare cling to risky assets? Bitcoin, Ethereum, and other 'big players' led the decline, while other smaller coins plummeted even more, with many people logging into their accounts only to watch their numbers shrink.
Market volatility has also become unpredictable. The cryptocurrency market was already like opening a blind box, and the tariffs have directly cranked the difficulty up to hell level. Just the day before, prices were rising so much that people wanted to increase their positions, and the next day they were questioning their very existence as prices fell dramatically, resembling an ECG on the K-line chart. This rollercoaster market means that not only newbies are hesitant to enter, but even seasoned players are sweating bullets, fearing that one misstep could leave them as the 'cut vegetables' (a term for those who lose money in a downturn).
Mining days are also tough. Many of the heavyweights in Bitcoin mining have to be imported from abroad, and now with the tariffs, the prices of mining machines are skyrocketing. Small miners already operate on thin margins, and now with costs soaring, running the machines is like burning money; many can only silently shut down and exit. With fewer miners, Bitcoin output decreases, and as supply and demand fall out of balance, prices will begin to fluctuate.
Interestingly, the linkage of assets has taken a turn. Bitcoin used to be touted as 'digital gold', claimed to be a safe haven. However, in the turmoil triggered by tariffs, it has fallen in tandem with the stock market, plunging alongside US stocks. Where has its supposed independence gone? This operation has left many who viewed it as a hedge tool dumbfounded.
Of course, it’s not all bad news. The tariffs have clouded the global economy, and perhaps some will turn their attention to cryptocurrencies that are not under government control. After all, with a fixed total supply and ease of cross-border transactions, what if it truly becomes a new safe haven? But that’s a discussion for later; right now, whether the crypto market can recover depends on whether the US tariff policy will ease and if the global economy can catch a breath.
If anyone feels lost due to market fluctuations and doesn't know how to deal with being caught in a position, or feels misled during their trading process, feel free to reach out for a discussion!
