#TariffTensionsHitCryptoMarket

Rising tariffs and trade tensions are putting short-term pressure on crypto assets. Market reactions are primarily driven by risk aversion and liquidity tightening channels.

Key impacts:
• Risk Appetite: As global uncertainty increases, investors tend to exit volatile assets; this amplifies selling pressure on BTC and major altcoins.
• Liquidity Conditions: Tariffs pushing inflation expectations higher strengthen the likelihood of tight financial conditions. This can lead to the unwinding of leveraged positions.
• Correlation: In the short term, crypto's correlation with equities is increasing; macro headlines are becoming decisive in price setting.
• Altcoin Decoupling: Weak-based projects are more severely affected, while those with strong cash flow/ecosystem stories tend to remain relatively resilient.

What to watch:
• US–China/EU trade headlines and new tariff announcements
• Inflation data and central bank communications
• BTC dominance and spot ETF flows
• On-chain liquidity and derivatives market funding rates

Short-term approach: Limiting position sizes against volatility, waiting for confirmation at key support/resistance levels, and maintaining flexible cash ratios will be rational. In the medium to long term, macro clarity may create selective risk-taking opportunities.