- U.S. tariff policies drive crypto and equities decline.
- Increased volatility and market liquidations noted.
- Institutional investors show mixed reactions to changes.
Crypto stocks and digital assets, including BTC and ETH, have plummeted sharply as U.S. President Trump’s reciprocal tariff announcement revives market fear on August 1.
This tariff move impacts global markets profoundly, causing heightened volatility, major sell-offs, and liquidation events in the crypto sphere, signaling potential long-term ramifications for investors and asset strategies.
Crypto stocks and digital assets experienced a sharp decline as renewed U.S. tariff policies and inflation concerns affected market sentiment. Bitcoin (BTC), Ethereum (ETH), and other major cryptocurrencies tumbled alongside equities.
The decline follows U.S. President Donald Trump’s executive order to reimpose reciprocal tariffs. Market monitoring sources confirm no direct statements from Trump on this matter.
The crypto market saw significant liquidations, with over $570 million in long positions liquidated within 24 hours. This sell-off centered around BTC and ETH. Despite price declines, ETH continued to be a target for whale accumulation, indicating strategic repositioning rather than a broad exit from the market.
“Whale addresses accumulating ETH amid panic are typically interpreted as sophisticated accumulation during retail capitulation.” — On-chain signal analysis
Previous macro policy announcements have led to similar asset liquidations. Historical patterns reflect rapid TVL outflows from DeFi platforms during these panics, affecting low-liquidity altcoins hardest. Potential outcomes include increased market volatility and changes in institutional investment behaviors. Analysts predict continued rotational shifts as investors adapt to policy changes.
