This time the BTC crash was definitely ignited by tariffs. Interestingly, the rebound last night was also rooted in tariffs.
I noticed that between 9 and 10 PM last night, the U.S. Secretary of Commerce first said that President Trump was willing to negotiate with allies on the issue of import tariffs on trucks.
This was clearly a signal to the market indicating 'policy easing.'
Sure enough, at 1:17 AM, Trump posted on Truth Social, admitting that 'tariffs can be flexibly adjusted,' and his tone was noticeably softened — this tactic actually aligns with his usual approach: first, he puts pressure with tough words, then eases off once the market reacts. I've seen him use this trick with Canada and Mexico tariffs before.
The reaction of BTC was also timely, starting to rebound around 9:50 PM, and this trend continued until this morning. It is evident that the market's reaction to the 'policy easing signal' was quite direct.
Looking back, when Trump first hinted at a 25% tariff on imported trucks starting November 1st, BTC immediately fell over 6.8%, triggering nearly 730,000 liquidations.
This is worth pondering: while tariffs indeed ignited the crash, the deeper reason is that BTC is currently affected by tightening liquidity, revealing its inherent fragility.
The current market is completely driven by emotions — a single statement can sway prices, which is common during sensitive policy periods.
I predict that leading up to the Supreme Court's review of the legality of tariffs in November, the market will likely experience repeated fluctuations, but the amplitude should gradually narrow, as the market is also gradually digesting these policy signals.
Additionally, it’s important to recognize that the initiative regarding tariffs is still in Trump’s hands.
He could completely replicate previous actions, first announcing a pause on tax increases to stabilize the market, and then coordinating with the Federal Reserve's policy adjustments.
This 'tighten first, loosen later' approach has precedents,
Follow For More!
