The Federal Reserve’s new tariff policy has significantly disrupted global markets, particularly the cryptocurrency sector. Bitcoin and Ethereum are feeling the brunt of this shift as prices react to uncertainty and market volatility. 10% decline for Bitcoin from $80,000 to $74,000 in just one day reveals a significant reaction to the new policy. Ethereum is facing liquidity issues, with potential liquidations expected at or below $1,000. The Federal Reserve Governor Randal Quarles has been vocal about these market shifts since he announced the new tariff policy on April 7, 2025, highlighting its impact on global markets, including cryptocurrencies. Quarles’ caution emphasizes that tightening monetary policy alongside balance sheet adjustments during inflationary pressure from external shocks like tariffs can lead to significant market volatility.