Tariff Analysis: The Intersection of Global Trade Policies and Cryptocurrency Markets

The basic functions and effects of tariffs

Tariffs are mainly used to protect local industries, increase national fiscal revenue, and serve as leverage in diplomatic and trade negotiations. However, excessively high tariffs can drive up the prices of imported goods, increase the burden on consumers, and may trigger trade retaliation, harming global supply chains and economic growth.

The US-China trade war and tariff escalation in 2025

In April 2025, the United States imposed a 104% tariff on Chinese goods, claiming to protect domestic manufacturing, but this move triggered panic in the market. The S&P 500 index plummeted, tech giants saw their stock prices collapse, and global market capitalization evaporated by over $10 trillion in the short term, highlighting the severe impact of high tariff policies on capital markets.

The impact of tariffs on the crypto market

Although cryptocurrencies are not directly affected by tariffs, the risk aversion sentiment and liquidity changes among global investors have caused significant fluctuations in the price of Bitcoin and the overall crypto market capitalization. Recently, the price of Bitcoin fell below $75,000, leading to a bearish market sentiment, and some large holding institutions were forced to reduce their positions, intensifying the downward pressure on prices.

Investor strategies

In the era of high tariffs, investors should diversify their asset allocation by combining gold, bonds, and stablecoins to spread risk. At the same time, closely monitor policy dynamics, use market fluctuations for arbitrage or hedging, and rationally assess the risk-hedging position of encryption currency.

summary

Tariff policies, as an important lever in the global economy, are reshaping capital flows and market sentiment. Although cryptocurrencies are not directly affected by tariffs, their price fluctuations reflect macroeconomic and geopolitical risks. As the market gradually adapts, tariffs may spur a new round of crypto asset revaluation.