The year 2025 has witnessed the most heavy protection of the United States since the great depression. With President Donald Trump’s return to his post in January, the new customs tariff shook global markets and raised concerns about a full trade war.
The new definitions group of President Trump, which was announced after the closure of the markets on April 2, raised taxes to import the United States to levels that have not been seen since the great depression-specifically, to the same high levels as those set by the controversial SMOOT-Hawley tariff law in the 1930s.
Delay Visions Common with Finbold on April 7 of Binance Research It revealed that Crypto lost the market value of $ 1 trillion since the first round of the US tariff ads, with the total number of capitalization by 25.9 % of its highest levels in January.
While global trade partners respond to revenge measures and delegated investors of risk assets, the encryption sector bears the uncertainty, with feelings and capital sliding in traditional safe havens.
The capital escapes from encryption with the condensation of a feeling of dangers
The shock of the customs tariff sparked a wide reaction in the financial markets. Both encryption and arrows slipped into a correction area, while traditional safe havens such as gold gathered.
Since the shock of the first tariff, the S&P 500 has decreased by 17.1 %, while gold increased by 10.3 %, as it broke the highest consecutive levels at all as investors demand a shelter of economic instability.
The encryption markets, however, endured the investor’s journey. Bitcoin (BTC) decreased by 19.1 %, but the losses were more severe in Altcoin space.
ETHEREUM (ETH), the second largest digital asset, decreased by 44.1 %. High beta categories such as Memecoins and artificial intelligence symbols have suffered from sharp drops by 58.1 % and 52.5 %, respectively. The distinctive symbols of games and layer 2 decreased about 50 %, while Defi symbols decreased by 31.9 %.
The large-scale sale process has erased these gains in the first year in most of the encryption market and pushed Bitcoin to negative lands for this year-despite strong performance in 2024.
Institutional confidence weakens
The contraction is also reflected in institutional feelings. accident Bank of America The World Fund’s director’s poll shows that only 3 % of the box managers currently prefer Bitcoin in the context of the trade war, compared to 58 % who prefer gold.
The fluctuation increased as well. Bitcoin fluctuations increased for one month above 70 %, and ETHEREUM increased by 100 % in the wake of tariff news.
With liquidity tightening and aversion grows from risks, crypto narration is questioned as a hedge against economic uncertainty. Currently, investors appear to have priority to maintain capital – and the encryption is no longer at the top of their list.
Distinctive image via Shutterstock
