On 2/4/2025, called "Liberation Day" by US President Donald Trump, is attracting significant attention from global investors and economists.
On this day, the US is expected to announce "reciprocal" tariffs against countries that impose trade barriers on the country. According to Trump, this is a crucial turning point to protect the US economy. However, many experts warn that this move could cause significant volatility in financial markets and have serious impacts on growth.
According to Bloomberg, Trump is preparing to announce a new series of tariffs on 2/4, targeting countries with trade policies unfavorable to the US.
Alex Krüger, a famous economic analyst, emphasized that "Liberation Day" could be the most important event of the year, with an impact ten times greater than any meeting of the Federal Reserve (Fed).
"April 2nd is like election night. It's the biggest event of the year, ten times more important than any FOMC meeting. And any scenario is possible."
According to him, the market reaction will depend on Trump's approach. If Trump introduces softer measures, the market could strongly recover. Conversely, if he imposes widespread tariffs, the market could plummet 10-15% in a short time.
Krüger also warned about a worse scenario: A "financial storm" could hit in mid-April, coinciding with the US Tax Day, making negative market sentiment even more severe.
The Washington Post emphasized that the uncertain sentiment around "Liberation Day" is causing anxiety in many countries. Some nations have taken certain actions to try to appease Trump. For example, Mexican President Claudia Sheinbaum has cooperated with the US on immigration and drug crime issues, temporarily reducing tariff pressure.
However, experts believe these are only short-term solutions and cannot completely prevent risks from Trump's tariff policies.
"In the past 2 months, Trump's tariff policies have caused significant harm to US businesses and consumers, but the April 2nd date could make things ten times more serious. We don't know exactly what they will do, but based on what has been announced, it seems all imported goods to the US will be subject to new tariffs," said Joseph Politano, economic policy analyst at Apricitas Economics.
In early February, Trump imposed a 25% tariff on imports from Canada and Mexico, and a 10% tariff on Chinese goods. The crypto market immediately fluctuated: total market capitalization dropped 8% in just one day, with Bitcoin plummeting from around 105,000 USD to around 91,000 USD.
Subsequently, on 3/11, Trump announced new tariffs on Canada, further causing the market to slide. From early February to now, the S&P 500 has dropped 7%, and Nasdaq lost 10%, mainly due to concerns about inflation and recession.
Therefore, the upcoming "Liberation Day" could create extremely large volatility, triggering a wave of liquidation for cryptocurrency traders.
You can view Bitcoin prices here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment decisions.
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