On April 1st, 2025, U.S. President Donald Trump announced sweeping new tariffs as part of what he called “Liberation Day”, aimed at protecting American industry and reducing reliance on foreign imports.
These tariffs include:
- A 10% base tariff on all imports
- A 34% tariff on goods from China
- A 46% tariff on Vietnam
- A 20% tariff on the European Union
Unsurprisingly, global markets reacted. But what caught many off guard is how strongly the crypto market responded—even though it’s supposed to be independent from traditional systems. So… why is this happening?
Isn’t crypto supposed to be different?
Yes—Bitcoin and crypto are decentralized, meaning they don’t rely on central banks or governments. But that doesn’t mean they’re disconnected from the real world.
Here’s why:
1. Investor sentiment shifts fast
Markets hate uncertainty. These aggressive tariffs could lead to global trade wars and economic slowdowns. When that fear kicks in, investors often pull out of riskier assets—and crypto is high on that list.
2. Less money flowing into markets
If companies and economies are strained by new costs (like paying more for imports), there’s less liquidity overall. That means less money flows into crypto, and when liquidity dries up, prices fall.
3. The dollar gets stronger—for now
Tariffs often drive up demand for the U.S. dollar. As the dollar strengthens, many investors sell assets (including Bitcoin) to hold cash. That puts downward pressure on crypto prices.
The result? Pain across the market
Since Trump’s announcement:
- $487M+ was liquidated in the crypto market in just 24 hours
- Bitcoin dropped nearly 4%
- Ethereum, Solana, and others followed with even sharper losses
- Fear is back—and traders are stepping back
Is this good or bad for crypto?
It depends on how you look at it.
- In the short term, this is bearish. Tension, uncertainty, and reduced liquidity typically hit crypto hard.
- In the long term, however, it strengthens the case for Bitcoin as an alternative to government-controlled financial systems.
When governments impose restrictions, decentralized assets look more attractive.
The bottom line
President Trump’s new tariffs may seem like a trade policy story—but they’re already shaking the foundations of the global financial system, including crypto.
Crypto doesn’t live in a vacuum. It reacts to global forces, just like everything else.
But while traditional markets may panic, Bitcoin was built for moments like this.
News Highlights
1. MARA Holdings Eyes $2B for Bitcoin
Bitcoin mining firm MARA Holdings plans to raise up to $2 billion through a stock offering, with part of the proceeds earmarked for purchasing more BTC.
2. Ripple vs SEC: Countdown Begins
Ripple’s long-standing legal battle with the SEC could end within 15 days, sparking speculation around an XRP ETF. However, confidence in XRP’s market potential has plummeted, with Polymarket odds for a new ATH before mid-2025 dropping from 90% to just 4%.
3. PumpSwap Surges to $10B Volume in 10 Days
PumpSwap, the new DEX from Pump.fun, has crossed $10 billion in trading volume and $20 million in fees within just 10 days, riding the wave of meme coin momentum in DeFi.
4. Binance Restores USDT Withdrawals in Europe
Binance has completed the restoration of USDT withdrawals for European users after temporary disruptions, bringing stablecoin services back to normal across the region.
5. U.S. Considers Bitcoin-Backed Treasury Bonds
A proposal from the Bitcoin Policy Institute suggests issuing “BitBonds”—U.S. Treasury bonds backed by Bitcoin—to help reduce national debt without raising taxes.
6. Sony Singapore Accepts USDC Payments via Crypto.com
Sony Electronics Singapore has integrated USDC payments through Crypto.com, marking a key move toward stablecoin adoption in Asia’s consumer tech market.
7. FDUSD Falls Below Peg, Drops $130M in Market Cap
Stablecoin FDUSD slipped 5% below its $1 peg on April 2, 2025, dropping to $0.9456 and losing $130 million in market cap. Market watchers are monitoring the situation closely.
8. GameStop Raises $1.5B to Buy Bitcoin
GameStop has secured $1.5 billion via a convertible bond offering, with plans to acquire up to 17,900 BTC. The move aims to strengthen its treasury and support $GME stock performance.
9. Coinbase CEO Pushes for Stablecoin Law Reform
Coinbase CEO Brian Armstrong is advocating for new stablecoin laws that allow issuers to pay on-chain interest directly to holders—arguing it would bring major benefits to U.S. consumers and the economy.
