03.04.2025 18:42
After the announcement of the new tariff package by U.S. President Donald Trump, the Crypto Fear and Greed Index dropped by 19 points in one day, falling to a level of 25. While the cryptocurrency market capitalization decreased by 4%, Bitcoin fell to $83,073, and Ethereum dropped to $1,816.
As the global cryptocurrency markets experienced a sharp decline, the Crypto Fear and Greed Index fell to a level of 25, entering the "Extreme Fear" zone. This drop is considered to be directly linked to the new "Day of Salvation" tariffs announced by U.S. President Donald Trump. Investors are particularly anxious about the implementation of tariffs reaching up to 54% on China.
Trump's Tariff Move Hits Bitcoin and Altcoins
The anxiety in the crypto markets escalated following Trump's surprise tariff move. The Crypto Fear and Greed Index dropped by 19 points in a single day, falling to 25 and dragging the market into the "Extreme Fear" zone. This sharp decline occurred after the new "Day of Salvation" tariffs announced by U.S. President Donald Trump on April 2.
The tariff package announced by Trump imposes a basic tax of 10% on imports, while much higher rates will be applied to certain countries. Tariffs on China will reach a total of 54% by combining the existing 20% tax with the newly introduced 34% rate. The European Union will face a 20% tariff, while Vietnam will be subject to 46%, Taiwan to 32%, India to 26%, and Japan to 24% tariffs.
Canada and Mexico are currently exempt from the basic 10% tariff. This exemption could change if Trump removes the 25% tariffs he initially imposed on these two countries under the pretext of combating drug trafficking and crime.
Trump also introduced a 25% customs duty on all cars produced in foreign countries, which will come into effect at midnight on April 4. While investors approach this decision with skepticism, Trump claims that these measures will protect American industries and lead to lower prices for consumers.
Following the tariff announcement, significant declines were observed in financial markets. In U.S. stock markets, Dow futures lost more than 1,000 points, while significant drops were also seen in the S&P 500 and Nasdaq. The cryptocurrency markets reacted similarly.