📌 1. Trump’s Tariffs Have Triggered Major Crypto Volatility
Market sell-offs tied to tariff announcements:
When President Trump threatened large tariffs on China (including a 100% tariff) and other sweeping trade policies, crypto markets reacted strongly — triggering massive sell-offs and liquidations (Bitcoin saw a historic liquidation event tied directly to tariff panic).�
Nasdaq
After big downward moves, prices often rebounded, meaning tariff news has been a catalyst for sharp, short-term volatility rather than a steady trend.�
Investors +1
👉 Tariffs do not directly regulate crypto, but they affect macro markets, risk appetite, and investor sentiment — which tends to hit risk assets like cryptocurrencies harder.�
The Motley Fool
📊 2. Broader Crypto Policy Under Trump Is Mixed
While tariffs caused market instability, the Trump administration has also taken pro-crypto regulatory steps:
Pro-crypto regulatory and legislative moves:
Trump signed an executive order to support crypto growth and clarify digital-asset regulations.�
Pillsbury Law
The GENIUS Act became law — a cornerstone crypto regulatory bill focused on stablecoins and clearer rules for digital assets.�
Wikipedia
There has been a wind-down of aggressive crypto enforcement that characterized previous years, including the disbanding of enforcement teams and easing of restrictions for financial institutions.�
Reuters
So regulation has generally trended toward clarity and industry support, even as trade/tariff policy caused market shocks.
💡 3. How Tariffs Indirectly Hurt Crypto Confidence
Tariffs themselves don’t target crypto — but the effects include:
📉 Market Uncertainty
Higher tariffs increase economic uncertainty and slow global trade — investors often move away from risk assets (like crypto) in such environments.
Large crypto sell-offs have coincided with tariff escalation news.�
Nasdaq
📊 Correlation with Traditional Markets
Risk-off sentiment in stocks and commodities tends to spill over into crypto — so tariffs that spook equity markets can indirectly
