Last week was a time when a storm swept through not only the cryptocurrency market but also the global financial markets. As expected, the US government held a 'Tariff Liberation Day' event on April 2 (local time) the tariff rates to to each in the. problem arose from the fact that these rates were at a very level that the market had not anticipated at all.
>administration announced that it would it would impose% impose a universal tariff of 10% on all countries worldwide. From now on, any countryiff must bear a 10% tariff to export goods to the The the The Trump administration simultaneously announced individual mutual tariff rates about 20 that have a trade United States.According to the disclosed tariff rates, China must pay a mutual a%, the European EU 20%, Japan 24%, and South Korea 25% of mutual tariffs from April 9. President Donald Trump explained that negotiations on the rates would be possible until April 8.
After the tariff announcement, the US stock market fell sharply between April 3-4. The Standard & Poor's (S&P) 500 index dropped by 10.5%, and And Nasdaq fell fell by 9.3% and nasdaq index fell fell by 11.4%.
US VS China·EU... Stock Prices Plummet as Tariffs and Retaliatory Tariffs are Exchanged
The consecutive two-day decline was significant because countries around the world responded strongly to US mutual tariffs. China announced that it would control rare earth exports while predicting a 34% retaliatory tariff identical to what the US imposed The which was subject to a 20% tariff from the US out a 50% retretaliatory tariff card.
The atmosphere is somewhat harsh. In France, there are discussions that domestic companies should consider suspending US investment, and in Germany, there are claims that about 1, of gold bars stored in New York should be shipped by ship.
Eventually, the strong friction between major countries around the world is likely to become a factor that hinders the economy from running smoothly. On the prediction market platform Polymarket, the betting rate that a US economic recession would occur due to the tariff effect soared to over 50%.
Bitcoin prices showed a relatively good performance, falling by about 5% in this atmosphere. However, while increasing the decline over the weekend, it showed a price drop to the early 77,000 dollars at one point on the 7th. In the case of Ethereum, it plummeted by over 10% on the 6th, recording a price drop to the 1,500 dollars at one point.
The tariff risk issue is being transferred to the cryptocurrency industry through various routes. Nevertheless, there is not a small atmosphere in the cryptocurrency industry that that there will be more opportunities in the future.
This is because the possibility of the Federal Reserve (Fed) lowering interest rates has increased due to the US economy not getting significantly worse. According to the FedWatch data provided by the Chicago Mercantile Exchange (CME), the market currently expects 4-5 interest rate cuts to be decided within this year. Former BitMEX CEO Arthur Hayes stepped claimed that "the changing global financial environment can potentially raise Bitcoin prices to $1 million".<2>uncertainty Economic Uncertainty Clears and Prices Stabilize, Fed Rate Cut Likely to ComeOn the day after the tariff effective date, on the 10th (Thursday and the,, Price Price Index (PI PricePI) will be announced respectively.. The. Michigan 5-year inflationationexpectation, which has been attracting attention recently, is also scheduled to be released on the 11th.
Price stability essential element for the Fed to intervene in the market. Regardless of how many rate cuts the market expects, the Fed cannot easily lower prices if the inflation rate does does not fall within the target range.
The tariff uncertainty-related uncertainties caused by each country and the possibility of price re-rising. If these two are resolved, the current decline could be an easily passing incident. We wish you a successful investment investment investment this week as well.
