Crypto crash: Global markets shake after Trump’s tariff decision

 Crypto market crash follows Trump's tariff decision:

Markets around the world dropped sharply after former U.S. President Donald Trump announced he would not ease up on trade tariffs. This news worried many investors, who fear that stronger tariffs could hurt the global economy and possibly lead to a recession. Stock markets in the U.S., Europe, and Asia all fell as investors rushed to sell their shares and avoid further losses.

In the U.S., stock futures pointed to losses of 3–4%, and Hong Kong’s Hang Seng index fell more than 10%. Investors around the world moved their money into safer places, like government bonds, which caused bond yields to fall. This kind of shift usually means people are nervous about the future of the economy.

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Goldman Sachs, a major financial company, raised the chances of a U.S. recession to 45%. They said the heavy financial pressure caused by the new tariffs could slow down economic growth. Trump, however, stood by his decision. He said the tariffs were necessary to fix trade problems with other countries, including China and the European Union. In response, China put 34% tariffs on U.S. goods.

The stock market losses were massive. In just two days, U.S. stocks lost over $5 trillion in value. That’s the biggest drop since the COVID-19 crash in 2020. Even some of Trump’s past supporters, like investors Bill Ackman and Stanley Druckenmiller, said the tariff strategy could harm America’s economy and image around the world.

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As stock markets sank, investors looked for safer places to keep their money. This led to a rise in the value of safe-haven bonds. On the other hand, commodities like oil and metals, as well as cryptocurrencies, also dropped. The idea of a global slowdown made people pull out of anything seen as risky.

The crypto market took a big hit too. Bitcoin dropped to $75,000, and many other cryptocurrencies lost even more in percentage terms. This shows that people are nervous not just about stocks, but about the whole financial system. Until there’s more clarity on trade and the global economy, many investors are likely to stay cautious.