“Crypto Winter Arrives in Spring… Cryptocurrency Shaken by Trump’s Tariff Bomb”

Trump Announces ‘Reciprocal Tariffs’ Policy
Bitcoin Plummets to $82,000

Long-term Positive Outlook for Bitcoin, Photo = Shutterstock,
, ‘The virtual asset (cryptocurrency) market is experiencing a sharp decline following President Donald Trump’s tariff announcement. The investment sentiment is being suppressed due to the announcement of a higher-than-expected level of reciprocal tariffs.’,
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, ‘As of 11:15 PM (Korean time) on the 3rd, according to the cryptocurrency data platform CoinMarketCap, Bitcoin (BTC), the leading cryptocurrency, is trading at $82,024, down 4.01% from the previous day. Bitcoin showed an increase to $88,000 the previous day but plummeted to the $82,000 level immediately after President Trump’s tariff announcement in the early hours.’,
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, ‘Altcoins experienced a more significant drop. At the same time, Ethereum (ETH) is trading at $1,762, down 5.62% from the previous day, falling below the psychological support level of $1,800 for the second time since March 31. Other major altcoins like XRP, Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Pi Network (PI) are also showing a bearish trend.’,
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, ‘The prolonged market weakness due to macroeconomic uncertainties and geopolitical risks has been further exacerbated by Trump’s tariff bombshell, leaving many coins down more than 50% compared to last year. Projects like NEO and Mask Network (MASK), which have suffered particularly severe losses, have recognized the seriousness of the current situation and announced emergency measures.’,

, Photo = White House website capture, ‘This cryptocurrency market crash was triggered by President Trump’s tariff policy. Earlier, at around 5 AM, President Trump announced in a speech at the White House Rose Garden that the US would impose a basic 10% tariff on all imported goods and apply reciprocal tariffs to over 60 trading countries.’,
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, ‘The reciprocal tariffs rates have been set as follows: △China 34%, △European Union (EU) 20%, △Vietnam 46%, △Taiwan 32%, △Japan 24%, △India 26%, △Thailand 36%, △Switzerland 31%, △Indonesia 32%, △Malaysia 24%, △Cambodia 49%, △United Kingdom 10%, △South Africa 30%.’,
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, ‘South Korea, which has previously signed a Free Trade Agreement (FTA) with the US, will also be subjected to a 26% reciprocal tariff. Yoo Sang-dae, Deputy Governor of the Bank of Korea, stated, “The US reciprocal tariff measures have resulted in higher tariffs per country and a broader range of target countries than the market expected. As a result, financial market volatility is highly likely to expand depending on the responses of major countries and future developments.”‘,

, ① Inflation Concerns Increase… Possibility of Interest Rate Cuts Decrease,
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, ‘Firstly, the increased likelihood of inflation triggering within the US due to tariffs is seen as worsening the investment sentiment for cryptocurrencies. As reciprocal tariffs lead to higher inflation in the market, the possibility of interest rate cuts is reduced, potentially constraining market liquidity and investor sentiment.’,
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, ‘Once tariffs are implemented, upward pressure on prices within the US is inevitable. The US has been importing goods like mobile phones, electronics, machinery, textiles, and wood at affordable prices from countries like Vietnam, which have comparatively lower labor costs. However, with the imposition of tariffs, the prices of these imports will rise.’,
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, ‘If inflation occurs in the US, it will pose challenges to the Federal Reserve’s (Fed) plans for interest rate cuts. Achieving the annual inflation target will make it increasingly difficult to proceed with interest rate reductions.’,
, Jerome Powell, Chairman of the US Federal Reserve, during a press conference. Photo = Xinhua News Agency,
, ② Concerns about Economic Contraction… Negative Impact on Cryptocurrencies,
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, ‘The economic contraction of countries that have become targets of tariffs could also have a negative impact on the cryptocurrency market.’,
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, ‘The US reciprocal tariffs target countries that have trade surpluses with the US, with tariff rates determined by the scale of the trade surplus. This means that the higher the trade dependence on the US and the higher the surplus ratio, the higher the tariffs imposed.’,
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, ‘Thus, if the trade volume decreases due to reciprocal tariffs, the Gross Domestic Product (GDP) of the affected countries may also decrease. For example, Vietnam recorded $123.463 billion (approximately 124 trillion won) in trade with the US in 2024, which accounts for 26% of Vietnam’s GDP ($476.3 billion) in 2024.’,
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, ‘Kim Jin-il, a professor of economics at Korea University, explained that “(Such large-scale tariffs are) unprecedented. It’s uncertain whether US inflation will rise first or if the target countries’ real economies will be hit first.” He added, “Central banks in each country will have to consider response measures closely for the future situation.”‘,
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, ③ Increased Geopolitical Risks… Possible Backlash from Retaliation,
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, ‘Finally, the retaliatory actions from countries affected by the unilateral imposition of US reciprocal tariffs also pose a risk. Upon President Trump’s announcement of reciprocal tariffs, the European Union, Canada, and China immediately expressed their intent to respond.’,
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, ‘In particular, China’s Ministry of Commerce released a statement saying, “Ignoring the outcome of years of multilateral trade negotiations and the fact that the US has gained huge benefits from international trade for a long time, China firmly opposes US reciprocal tariffs and will take firm countermeasures to protect its rights and interests.”‘,
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, ‘Additionally, if Japan and China, which hold the first and second-largest amounts of US Treasury bonds, decide to sell these bonds as a retaliatory measure, it could affect US interest rates. China has been consistently selling US Treasury bonds in response to US protectionist measures for the past few years.’,
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, ‘Professor Kim Jin-il noted, “If countries like China choose to sell Treasury bonds as a response, US interest rates will naturally increase.”‘,

, Photo = Shutterstock,
, ‘In contrast, some experts argue that President Trump’s reciprocal tariffs policy could be a long-term positive for Bitcoin.’,
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, ‘Omid Malekan, associate professor at Columbia Business School, commented, “Bitcoin is already regarded as ‘digital gold’ and considered a safe asset. When economic uncertainty increases, investors may opt for Bitcoin to protect asset value.”‘,
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, ‘Another industry insider also noted, “The US’s unilateral attitude will weaken the dollar’s currency dominance and the US economy. As a result, assets like Bitcoin or gold might become more appealing as a consequence of these reciprocal tariffs.”‘,
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, More news can be found on the blockchain and cryptocurrency investment information platform (app) , ‘Bloomingbit’, .