Since August 1, 2025, following the announcement of increased tariffs by President Trump, the crypto markets have experienced notable volatility affecting both centralized and decentralized trading platforms.
Impact of Trade Tensions on Crypto Market
The trade tensions between the U.S. and China have significantly affected the crypto markets since the announcement of the tariff increase. This led to sharp declines in major digital assets and a general deterioration of market sentiment.
Liquidations and Asset Sales
Key industry figures like Arthur Hayes from BitMEX liquidated over $13 million in assets, converting them into USDC. This signaled a strong bearish sentiment in the market, confirmed by a nearly 6% drop in global crypto market capitalization within 24 hours.
Future Predictions and Analysis
Experts predict that adverse economic conditions and trade conflicts may continue to impact cryptocurrency values. Past trade tensions have demonstrated tangible effects on market dynamics.
In the current climate, the crypto market remains under pressure from external factors such as trade tensions. The community remains cautious and closely monitors the developments.
