Trump's Liberation Day has arrived. He is set to sign a broad tariff at 4 PM Eastern Time on the 2nd (5 AM Korean time on the 3rd). This may cause significant uncertainty in the market and have several major impacts on the cryptocurrency market.
To answer the most urgent questions in the cryptocurrency community, BeInCrypto conducted exclusive interviews with several industry experts.
What's happening on Liberation Day?
President Trump's Liberation Day is a long-awaited event where he plans to pass broad tariffs. He is set to sign these tariffs at 4 PM Eastern Standard Time in the White House Rose Garden. These tariffs have caused significant anxiety, but will not occur for several hours. What do cryptocurrency investors need to know?
"The cryptocurrency market remains closely tied to macroeconomic trends, and unfortunately, uncertainty is currently prevalent. With new tariffs taking effect today, investor confidence is being shaken because the Trump administration has historically dealt with trade policies in an unpredictable manner." – Jack Vinnetrongit, CEO and Co-Founder of Sakuru Labs, in an exclusive interview with BeInCrypto.
This uncertainty is the core of the market impact on Liberation Day. Trump is set to essentially impose tariffs on almost every country, including 25% tariffs on car imports and reciprocal measures against retaliating countries. If this happens, it could lead to a US recession.
However, Trump has avoided tariffs at the last minute several times. These events previously drove up cryptocurrency prices, and Vinnetrongit argued that any "withdrawal or delay" could cause an "overall rebound" in today's cryptocurrency market. Ultimately, a narrowly averted crisis would be the most positive scenario on Liberation Day.
While these tactics may bring short-term gains, the cryptocurrency market desperately needs a positive narrative. If Trump has already implemented this scenario, can he bring significant profits again? Trump previously called his inauguration a "Liberation Day", so even the name has been recycled.
"'Liberation Day' is just one phase of an ongoing trade war and is unlikely to provide the clarity that investors, businesses, and households are seeking. Even if trade tensions ease, the US economy is still expected to weaken due to factors like government spending cuts and employment issues." – Pakul Mia, Institutional Business Development Lead at GoMining, in an interview with BeInCrypto.
In summary, today is fraught with many anxiety-inducing factors. Fortunately, as several key indicators suggest, we hope this economic uncertainty has already been priced in. Whatever happens, the president is playing a very high-risk game.
