New tariffs introduced by former U.S. President Donald Trump in August 2025 sparked significant volatility in global financial and cryptocurrency markets.
Impact of Tariffs on Cryptocurrency Market
The new U.S. tariffs initiated by Donald Trump caused significant fluctuations in the crypto markets, leading to a $3.75 trillion market cap dip and $635 million in liquidations.
Market Response to Volatility
The crypto sector responded immediately to the tariffs: Bitcoin slid by 3%. Giottus, a major Indian crypto exchange, highlighted shifts in trading behavior, emphasizing the risk-off sentiment among investors.
Long-term Consequences for Crypto Market
Historical precedents show that similar geopolitical events may have long-term effects on the markets. Observers note the importance of monitoring the situation closely.
Trump's introduction of new tariffs raises questions about the stability of crypto exchanges and their vulnerability to external factors, making the market's future dynamics particularly significant.
