Market Impact of Trade Tensions
On October 10, 2025, President Trump’s aggressive tariff policies sparked a crypto market turmoil, with significant impacts from supply chain disruptions affecting miners and liquidity worldwide.
The trade war implications are critical, causing over $200 billion in crypto market losses, highlighting the interconnectedness of global policies and digital asset markets.
Major impacts have been reported on both traditional and crypto markets following the escalation of tension between the U.S. and China under Trump's leadership. Aggressive tariff policies and supply chain disruptions are central to these recent changes.
The U.S., led by President Trump, imposed new tariffs on China. China's response with rare earth export curbs directly affects tech and crypto mining sectors. Recent tariffs echo strategies from the 2018 trade war, creating financial market volatility.
Tariffs Shake Traditional and Crypto Markets
The tariffs triggered a $200 billion loss in the total crypto market capitalization. Cryptocurrencies like BTC and ETH suffered price drops, while the DeFi sector saw total value locked decrease due to on-chain outflows.
"Tariff-driven inflation" could affect rates. — Federal Reserve, Policy Statement
Historical trends indicate that crypto assets are increasingly risky during trade policy disputes, mirroring the 2018 trade tensions impact on financial markets.
Echoes of 2018 in Current Trade Policies
Similar patterns to the 2018 U.S.-China trade war are emerging, with crypto and traditional markets showing vulnerability to political tensions. Past events demonstrated how quickly trade policy shifts could lead to financial stress.
Experts from Kanalcoin highlight that ongoing trade tensions can lead to further crypto market instability, predicting risk-off sentiment will persist until clearer policy directions emerge from the involved nations.