Crypto Market Pulse 👀
- Trump announced tariffs on 185 countries👀
- Nasdaq dropped-4.6% in 19 minutes😅
- Crypto followed but we believe the panic is overblown🤔
- Many countries are already negotiating with the US👌
- This was what he wanted to achieve🇺🇸
The reason we’re not overly concerned about the long-term impact of tariffs is that Trump’s trade strategy clearly aims to address existing imbalances. However, a key issue for U.S. treasuries is that if fewer dollars flow abroad due to lower exports, foreign buyers will have less capital to reinvest into U.S. bonds.
As the chart shows, the U.S. has long run a trade deficit (blue line), financed by capital inflows (orange line). If tariffs shift this balance, demand for treasuries could weaken, forcing the Fed and banking system to step in—which ultimately means more liquidity injections and potential dollar debasement.
In short, while the short-term market reaction to tariffs has been volatile, the broader picture suggests that liquidity injections could accelerate, which in turn would likely benefit risk assets (crypto and stocks)🚀
@Tody Right now, very few coins are actually up for sale, making this a liquidity game where big players are hunting overleveraged positions. Most of the selling pressure is coming from liquidations rather than organic selling.