Trump's Tariff Announcements Spark Volatility in Crypto Markets

Recent developments in the global economy have led to increased market uncertainty, particularly in the cryptocurrency sector.

The introduction of tariffs by President Donald Trump has been a major contributor to this volatility, with three significant announcements sparking widespread reactions from retail traders.

Santiment data shows that these tariff-related news events consistently trigger a spike in peak fear among retail investors, often leading them to sell their positions near market lows.

However, experienced traders take note of this phenomenon and capitalize on the subsequent market recovery.

In one notable instance, after Trump's 100% tariffs announcement on Chinese imports in October 2025, Bitcoin plummeted from its $126,000 all-time high to below $115,000 within four months.

The recent announcement of 15% global tariffs has added a new layer of uncertainty, with the dual nature of economic and legal implications causing market participants to reassess their positions.