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Crypto Banter Says Trump Tariff War Has Major Impact on Crypto Market
- Cryptocurrencies show a positive trend with Cardano (ADA) leading the pack by gaining 20%, followed by XRP, Ethereum, Solana and Bitcoin with varying percentage increases.
- A Bank of America survey reveals significant investor concern about a potential global trade war, ranking it as the most bearish scenario for 2025 and overshadowing fears of AI competition.
- Crypto analyst Ran Neuner suggests that Trump’s tariff strategy could have long-term strategic implications while causing short-term market volatility and potential downturns.
- The broader market impact extends beyond crypto, with potential ripple effects through Wall Street ETFs and global financial markets, potentially amplifying market instability.
The crypto downtrend has been stopped for now with most major cryptocurrencies flashing green. Among the biggest gainers in the top ranks is Cardano’s ADA, which made gains of 20% in the past 24 hours, currently trading for US$0.95 (AU$1.52) as per CoinMarketCap.
Second in charge of the rally is XRP which has gained 10%, followed by an 8% gain of Ethereum, 7% for Solana and 5% for Bitcoin.
Related: US Crypto Reserve ‘Bullish’, Market ‘Overthinking Things’, Says Bitwise Senior Exec
Trade War Fear is Rocking Investor Confidence
The market appears to be recovering from an announcement by US President Donald Trump that shook markets. Trump’s 25% tariffs on China, Canada and Mexico have been met with retaliatory actions by the latter two, while Mexico seems to be keen on reaching an agreement.
Just how significant is the impact of a trade war? Well, according to a Bank of America survey, quoted by The Kobeissi Letter, it’s pretty bad. Investor sentiment is such that people worry more about a global trade war than AI competition from China – it’s actually the most bearish scenario for 2025.
Trump made the tariff comments during an announcement that Taiwan Semiconductor Manufacturing Company (TSCM) would invest US$100 billion (AU$160 billion) in chip manufacturing in the US.
While that may be good news for the US in the long-term, building factories takes time and meanwhile, prices for US consumers will go up, further increasing inflationary problems the country has.
Popular crypto analyst Ran Neuner said on his YouTube channel, Crypto Banter, that while long-term Trump’s move may be good, in the short-term it spells trouble for financial markets.
Tariffs, unfortunately, are not good for markets. They cause markets to collapse. And sometimes they cause markets to go down for a long time. […] Generally, when markets go down as a result of real tariffs, these things [markets] can go down for a long time.
Ran Neuner Trump No Idiot, Says Crypto Bro
But, Neuner believes Trump is well aware of the negative effects of the tariffs, because “Trump is not an idiot”.
He said Trump is more interested in leaving a lasting long-term legacy rather than worrying about day-to-day market prices, and is “willing to sacrifice short-term gains, for long-term legacy gains”.
But what about crypto prices, I hear you ask.
Related: Bitcoin Mining Stocks Wobble as Miner Profitability Drops, JPMorgan Reports
Well, most of the crypto not held by Michael Saylor or Satoshi Nakamoto is in (Bitcoin and Ethereum) ETFs managed by Wall Street financial juggernauts such as BlackRock.
Therefore, “crypto is going to suffer a whole lot more” than the traditional financial markets when these large financial players go in “risk-off” mode, says Neuner.
So, basically, a lot more volatility, if Crypto Banter is right.
Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
