On April 4, 2025, the U.S. stock market experienced a significant decline triggered by new tariff measures. Major indices like the Nasdaq and S&P 500 fell over 4%, reflecting investor fears of recession.
Need for Tariffs and Their Impact on Stock Markets
With the introduction of new reciprocal tariffs, U.S. stock markets faced a sharp decline. The Nasdaq Composite fell by 4.5%, while the S&P 500 dropped by 4.12%. Tariffs initiated by President Trump raised unpleasant expectations for global trade, leading to increased volatility in both traditional and cryptocurrency markets.
Comparing with 2018: Past Tariff Tensions
The situation of 2025 resembles events from 2018 when tariff discussions also caused turbulence in financial markets. Back then, after a partial retraction of initial plans, the markets were able to stabilize.
Outlook and Consequences for the Crypto Market
Cryptocurrency markets also suffered, recording a 4.6% drop in total capitalization within 24 hours. Ethereum, priced at $1,802.40, showed a 50.41% decline over the past 90 days. Analyst Mike McGlone from Bloomberg noted, "If broader financial markets continue to weaken, ETH could drop significantly, potentially falling back to $1,000."
The intensification of U.S. tariff policy results in serious ramifications for both stock and cryptocurrency markets, which may drive changes in investor strategies and pose new challenges for the global economy.
