Trump's Tariff Escalation: Global Market Turmoil and Challenges for Crypto Assets

Background of Tariff Policy Upgrade

In April 2025, the President of the United States announced a 104% tariff on Chinese export goods, covering key areas such as technology, green energy, steel, and automobiles. This move is viewed as a tough response to "unfair trade," and the market generally believes it marks an intensification of the retreat from globalization, signaling the formation of a new cold war economic landscape.

The response of traditional markets worldwide

After the policy was announced, global stock markets plunged for four consecutive days, with the S&P 500 index falling below 5000 points. Tech giants like Apple and Microsoft saw significant declines in their stock prices, and global market capitalization evaporated by over $10 trillion in just a few days. Gold prices temporarily rose, but quickly fell back as U.S. Treasury yields soared, putting huge pressure on the overall macro market.

The fluctuations and structural changes in the Crypto Assets market

Although Crypto Assets are not directly affected by tariffs, market sentiment and capital flows are still impacted. The total market value of the crypto market fell from $3.9 trillion to $2.5 trillion, with Bitcoin dropping below $75,000 and ETH falling below $1,400, while most altcoins experienced significant corrections. It is worth noting that Bitcoin's market share continues to increase, reflecting a structural shift in mainstream coins absorbing funds from smaller coins.

Investor Sentiment and On-Chain Data

On-chain data shows that Bitcoin holders in the high price range are not panic selling; instead, the number of active addresses and transaction volume have rebounded, indicating that funds are still seeking entry opportunities. The Crypto Assets Fear and Greed Index has dropped to 17, which is in the extreme fear zone. There is a temporary inconsistency between sentiment and on-chain behavior, suggesting that the market may be undergoing a valuation adjustment.

The outlook on Bitcoin's role as a safe haven.

In the long term, the structural changes brought about by the trade war may prompt Bitcoin to shift from "digital gold" to a broader safe-haven asset. However, macroeconomic and regulatory uncertainties remain challenges. Innovation in the Crypto Assets industry is slowing down, and the positive effects of ETFs have yet to materialize, as the industry is currently at a crossroads between belief and reality.

Conclusion: Systemic Risks and Future Observations

The recent tariff escalation reveals the trend of de-globalization and the crisis of trust in the US dollar. The positioning of crypto assets in the global financial system is undergoing adjustment. The coming months will be a critical period to observe whether Bitcoin truly becomes a safe-haven asset. If it can stabilize or rebound, it will serve as an important signal for the crypto market.