U.S. tariffs announced at the start of 2025 have caused significant instability within the cryptocurrency market, particularly impacting Bitcoin and Ethereum prices. These policies, introduced by former President Trump, aimed to reshape trade imbalances but resulted in immediate sell-offs. Pantera Capital’s Cosmo Jiang identified a ‘buy the rumor, sell the news’ effect following the tariff announcement, attributing market corrections to uncertainty stemming from the policy changes. 📈
The introduction of a minimum 10% tariff on U.S. imports triggered swift price drops across digital assets. The S&P 500 also reflected these losses, highlighting a connection between traditional and crypto markets. This volatile period saw a staggering $2.2 billion in market liquidations as investors reacted to the rising fear of economic uncertainty.
While Bitcoin and Ethereum experienced sharp declines, historical trends suggest that macroeconomic policies significantly influence cryptocurrency volatility, mirroring past financial turbulences marked by policy shifts.