Tariff Turmoil: Crypto and Stock Markets React

The recent announcement of a 50% tariff on all EU goods by U.S. President Donald Trump has sent shockwaves through financial markets.

Crypto assets, particularly Bitcoin and Ethereum, experienced significant declines, with Bitcoin dropping 2.6% and Ethereum falling 3.5%. This tariff, part of a broader aggressive trade strategy, has raised concerns reminiscent of the U.S.-China trade dispute, leading to a wave of panic selling in crypto derivatives.

Over $300 million in long positions were liquidated as market anxiety intensified. While experts suggest the tariff may be a negotiation tactic rather than a permanent change, the immediate impact has been substantial, with the market cap for cryptocurrencies excluding Bitcoin decreasing by $90 billion.

Meanwhile, U.S. stock markets also faced declines due to these tariff threats, highlighting the interconnectedness of global trade policies and market performance.