The signals from U.S. President Donald Trump regarding reorganizing foreign trade policies have triggered a substantial uncertainty in the cryptocurrency market.
The announcement of the expiration of temporary tariff exemptions on electronic products has particularly unsettled investors. With an increasing perception of risk, some altcoin investors have chosen to reduce their positions. Additionally, the imminent release of a large volume of tokens is exerting additional pressure on the market.
Tariff Tensions Impact Cryptocurrencies
The trade tensions between the United States and China are escalating once again. Trump’s statement that “no country will be exempt from tariffs” has caused significant fluctuations in the markets. It was announced via social media that certain tariff exemptions, previously granted temporarily, would be terminated, and the products would be transferred to another tax category. The short-lived nature of the exemptions, particularly for electronic products, has shaken investor confidence.
Experts suggest that the new customs tariff of 145% on goods imported from China, alongside China’s corresponding announcement of a 125% tax increase, could impact not only global trade but also the cryptocurrency market. As the tendency to avoid risk grows, a notable increase in altcoin sales has been observed, leading to fluctuations in market liquidity.
Token Unlocks Create Additional Risk
Another factor contributing to increased volatility in the cryptocurrency market is the significant token unlocks scheduled in the coming days. According to data shared by Tokenomist, over one billion tokens will be released from locked positions. This situation may exert price pressure, especially on altcoins where supply-demand dynamics are sensitive.
Among the most notable token unlocks is expected to occur with Trump Coin, where approximately $321.6 million worth of tokens are anticipated to be released into the market. Other significant projects, including Arbitrum and Starkent, are also set to release $16.40 million and $27.20 million worth of tokens, respectively. The impact of these large-volume unlocks may amplify selling pressure among investors.
Experts believe that this combination of trade tensions and expanded supply could lead to sharp price movements in the short term. Therefore, investors are advised to reassess their portfolios and prioritize risk management.
