Trump News: How Tariff Policy Escalation Shakes the Crypto Market?

Background of Trump’s tariff policy escalation

On April 8, 2025, U.S. President Donald Trump suddenly announced a total of 104% tariffs on Chinese goods. This policy immediately became headline news in global financial media and the latest focus of Trump news. Unlike previous trade disputes, this round of tariffs covers a wider range of areas, including high-tech, green energy, steel, and automobiles—sectors where China has strong export advantages.

The new tariffs were added on top of an existing 34%, with an additional 50%, effectively labeling China’s exports as “hostile subsidies.” The White House claimed this was retaliation against “unfair trade,” but the market interpreted it more pessimistically. Many analysts believe this signals a deeper phase of deglobalization and the brewing of a new Cold War-style economic landscape.

Global market reaction: Traditional assets take the brunt

Since the policy announcement, the U.S. stock market, European and Asian markets have plummeted for four consecutive days, with the S&P 500 index falling below 5000 points. Technology stocks led the decline, with giants like Apple and Microsoft losing over $1.6 trillion in market value. The total global market value has evaporated by over $10 trillion, roughly equivalent to half of the EU’s GDP.

Gold spiked in the short term but quickly fell back due to surging U.S. Treasury yields. The yield on the 10-year U.S. Treasury returned above 4.3%, reflecting dramatic shifts in inflation and interest rate expectations. The entire macro market is under high pressure.

Crypto Market Shock and Structural Changes

Many investors once believed that crypto could be “immune” to Trump news, since crypto assets have no borders, no imports or exports, and no tariffs. But reality proved otherwise—crypto was not spared.

Image:https://www.Gate.com/trade/BTC_USDT

Around the time the tariffs took effect, the total crypto market cap plunged from $3.9 trillion to $2.5 trillion, with over $240 million liquidated in 24 hours. BTC dropped below $75,000, ETH fell below $1,400, and several overvalued altcoins saw corrections of more than 30%.

Interestingly, Bitcoin’s market dominance continued to rise during this period—from 52% to 56%, and as of April 9, 2025, exceeded 63%. This indicates that mainstream cryptocurrencies are “absorbing” the market value of smaller coins. This structural shift is worth noting.

Image:https://www.tradingview.com/symbols/BTC.D/

Subtle Signals of Investor Sentiment and On-chain Data

On-chain data offers a more objective perspective. According to Glassnode and CryptoQuant, URPD data shows that BTC holders in the $93,000–$98,000 range did not engage in panic selling, indicating strong conviction among high-level holders.

Meanwhile, active addresses and transfer volumes actually rebounded in the short term, suggesting that capital is still looking for entry points into the crypto market.

(Data Reference:https://www.theblockbeats.info/news/57658）

However, the Crypto Fear & Greed Index dropped to 17, signaling “extreme fear.” This disconnect between sentiment and on-chain behavior may indicate that the market is undergoing a wave of emotional correction and valuation restructuring.

Long-Term Impact: Is Bitcoin a Safe Haven?

For some long-term investors and institutions, the real impact of Trump news is not short-term price volatility, but the structural changes in the global order. In theory, crypto has the properties to become “digital gold,” but in reality, it’s still constrained by macro environments and regulatory uncertainty.

One issue in the crypto space is the declining pace of development and lack of innovation. The post-ETF boom has yet to materialize, and the entire industry is caught in a collision between belief and reality. It will take time to rebuild confidence.

Conclusion: Understanding the systemic risks behind trump news

The recent market turbulence triggered by Trump news is far more than just the result of a single trade policy. It has exposed trends of deglobalization, a crisis of confidence in the U.S. dollar, and a shifting role for crypto assets in the broader macroeconomic system.

We may be at the beginning of a profound transition. Bitcoin’s drop does not signal failure; rather, it may represent another price correction in its role as a “tool of distrust against the existing system.”

The coming months will be a critical window to observe whether BTC can truly serve as a “safe haven asset.” If geopolitical tensions escalate and Bitcoin remains stable or rebounds at high levels, it would be a major signal for the crypto industry.