Digital asset trading has been in turmoil as aggressive US tariffs have triggered a global economic downturn, with $1 trillion wiped out and extreme volatility.
Crypto exchange Binance in its research sees the rise in US tariffs as a disruptive effect on global markets, especially digital assets.
Since Donald Trump’s victory in January, his administration has imposed a wide range of trade policy measures.
The report has caused economic instability comparable to the Smoot-Hawley Tariff Act of 1930, with average US import duties rising to nearly 19% from 2.5% by 2024.
The crypto firm also reported how the shift has dented investor confidence and caused crypto valuations to plummet.
Market sentiment has become more cautious with investors reacting to the tariff announcement by shifting towards ‘risk-off’.
The pullback has affected several popular cryptocurrencies such as Bitcoin, Ethereum, altcoins and memecoins, which have plunged by more than half. Investors are turning towards traditional safe assets such as gold which is still holding its highest peak.
