Crypto Market Fear Soars as Trump’s Tariffs Trigger Funding Rate Drop

Recent escalation in the U.S. trade war, driven by President Trump’s new tariff policies, has sent shockwaves through the cryptocurrency market. Funding rates across major exchanges have plummeted below 0.005%, a rare signal indicating traders are overwhelmingly bearish. While many are choosing to hedge or disengage from the market altogether, this decline in activity is reflected in a significant drop of 42% in liquidation activity and a sharp 22.71% decline in crypto trading volumes, reaching $247.6 billion over the last 24 hours. This suggests traders are taking a defensive approach as geopolitical and economic uncertainty grows.