Crypto Market Prepares for Trump’s “Liberation Day” Announcement on April 2
The crypto market is preparing for potential volatility ahead of President Trump's announcement on April 2 regarding new reciprocal tariffs, referred to as "Liberation Day." Macro economist Alex Krüger highlights this event as critical, suggesting it could significantly impact global markets, including cryptocurrencies.
Key Points
- Krüger considers April 2 ten times more significant than any FOMC meeting, comparable to election night.
- Possible outcomes from the announcement include:
- Soft approach leading to a market rally.
- Mixed signals causing uncertainty and triggering liquidations.
- Maximalist tariffs potentially resulting in a 10% to 15% market crash.
- The US economy may slow due to tariffs, although a sharp slowdown is already anticipated by economists.
- Trump's tariffs aim at countries with unfair trade practices, targeting nations like the EU, Mexico, Japan, South Korea, Canada, India, and China.
- Immediate tariff implementation could provoke retaliatory measures, exacerbating market fears.
- Current total crypto market cap is $2.81 trillion.
