Trump's "reciprocal tariffs" severely hit the coin market! The global financial market is in chaos, how will the crypto assets perform in the future?

According to Trump's statement, this tariff policy will take effect on April 5, 2025, imposing a 10% baseline tariff on all foreign products. For countries with the largest trade deficit with the United States, higher individual reciprocal tariffs will be implemented, set to take effect on April 9. Additionally, a 25% tariff will be imposed on cars sold to the United States, which will take effect immediately on April 3.

There is no doubt that this measure has triggered a strong reaction in the market, with noticeable declines in both the stock market and the Crypto Assets market.
Market analysts point out that an increase in tariffs may lead to rising domestic inflation and trigger global trade tensions, further impacting economic growth. Currently, market concerns about a recession in the U.S. are intensifying. Forecasts indicate that the probability of a recession occurring in the U.S. by 2025 has exceeded 50%.

However, despite the market's strong short-term reaction to tariff policies, some analysts believe that this risk-averse sentiment may be temporary. While tariff policies may lead to a slowdown in economic growth, they do not necessarily trigger a full-blown recession, and the U.S. economy is still expected to maintain a growth rate of around 2%. At the same time, the Federal Reserve may respond to this situation by lowering interest rates, thereby injecting liquidity into the market.

In the current market environment, the future trend of Bitcoin remains full of uncertainty. Despite facing cost pressures from tariffs and fluctuations in market sentiment, Bitcoin is still regarded as an asset that can withstand inflation. With the participation of more institutional investors, confidence in Bitcoin is expected to gradually recover.

According to the latest market data, institutional holdings of Bitcoin are rapidly increasing. For example, a well-known buyer is Strategy, which currently holds 528,185 coins in BTC inventory; the company purchased over $2.5 billion worth of digital assets in March. Meanwhile, Tether, the company behind the popular stablecoin USDT, has also purchased 8,888 BTC coins and now holds nearly $8 billion worth of Bitcoin. This institutional "FOMO (Fear of Missing Out)" phenomenon indicates that more and more traditional financial institutions are beginning to include Bitcoin in their asset portfolios, further driving the market demand for Bitcoin.
In addition, the rising economic uncertainty and inflationary pressures may further drive investor funds into safe-haven assets such as Bitcoin and gold to cope with potential economic turmoil.
Some analysts suggest that the executive order signed by Trump allows the U.S. government to explore the possibility of purchasing Bitcoin without increasing budget burdens, and this new tariff revenue may become a source of funds for the U.S. to accumulate Bitcoin.
In summary, the impact of the United States' tariff policy on the economy and the market is gradually becoming apparent. As recession expectations intensify, investors need to pay more attention to market dynamics and cautiously assess investment risks. For Bitcoin and other Crypto Assets, future trends will be influenced by policies, market sentiment, and economic data. In the face of an uncertain economic environment, timely adjustments to investment strategies will be key for investors to cope with market fluctuations.