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The Trade War Begins

d.molina
Dmitrij
Molina
The Trade War Begins

Bitcoin, Ethereum, and the stock markets crashed on Monday following Donald Trump’s announcement of sweeping 25% tariffs on imports from Canada and Mexico. The U.S. President also made his first move on China, imposing a 10% tariff. These measures triggered immediate retaliatory threats from U.S. trading partners, exacerbating global market instability and dampening investor sentiment.

Investors reacted sharply, dumping risk assets all around the globe. The crypto market witnessed a carnage. #BTCUSD fell by 6.3%, dropping to a session low of $91,500 before recovering slightly to $95,000. #ETHUSD saw an even more brutal decline, plummeting by 27% at one point, marking its largest intraday drop since 2021. The last one, in particular, is struggling this year, as liquidity concerns and potential exclusion from the U.S. digital asset stockpile begin to agitate investors.

The broader cryptocurrency market also experienced heavy selling pressure, losing approximately $360 billion in total market capitalization. Trump-affiliated meme coin #TRUMP suffered severe losses, now trading 77% below its peak values.

The U.S. stock futures also lowered greatly during the Asian session, leading us to believe that on the market a significant gap could appear to the downside. The AI giant #NVDA could experience major losses.

So is it over now? Far from. Trump has promised to impose tariffs on the Euro Area too. In response, #EURUSD plunged 1.20% at market open. By the way, in our 2025 EURUSD scenarios, we predicted that the EUR this year is on a probable trajectory to struggle a lot.

The only asset to hold the ground, once again was… gold.

#XAUUSD fell 0.91%, only to rebound from the lower edge of the month-long rising channel. We cannot stress enough how much potential gold has, going into 2025. Meanwhile, it has already reached our second target of $2800/oz. Only $3000/oz. left to go!

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