Crypto Market Plunges Amid Tariff Fears
The Crypto Fear and Greed Index has fallen sharply to 25, indicating “Extreme Fear” in the market.This drop comes after U.S. President Donald Trump announced new tariffs on April 2. the tariffs, dubbed “Liberation Day,” have caused widespread unease in both traditional and crypto markets.
Trump’s policy introduces a 10% baseline tariff on imports, with higher rates for specific countries. For instance, China faces a 54% tariff, combining a new 34% rate with an existing 20%. The European Union will pay 20%,while Vietnam,Taiwan,India,and Japan will also see increased rates. Canada and Mexico are exempt for now.
Additionally, Trump imposed a 25% tariff on all imported cars, effective April 4. Despite skepticism, he claims this will protect American industries and lower consumer prices. This announcement lead to a significant drop in U.S. stock markets, with the Dow futures falling over 1,000 points.
The crypto market followed the downward trend.The overall market cap decreased by 4% to $2.7 trillion. Bitcoin (BTC) initially rose to $88,500 but then fell to $83,073. Other major cryptos like Ethereum (ETH) and Solana (SOL) also saw losses.
Arthur Hayes, co-founder of BitMEX, noted that if Bitcoin stays above $76,500 until U.S. tax day on April 15, the market might stabilize. He advises investors to stay cautious.
