What impact do Trump tariffs have on Crypto Assets?

Question

The tariff policy of President Trump is reshaping the global trade landscape with unprecedented force, and it has brought a "test of ice and fire" to the Crypto Assets market. In July 2025, the Trump administration took frequent actions: reaching an agreement with Japan to impose a 15% tariff and securing a $550 billion investment from them; at the same time, imposing a 19% tariff on goods from the Philippines and Indonesia. These policies seem to provide short-term benefits for the United States, but analysts point out that in the long run, they will weaken the U.S. economy and trigger a Crisis of Confidence among allies, which in turn will drive funds from U.S. debt to Asian markets and the Crypto Assets sector.

##Policy Turbulence and Market Volatility: Capital Migration Under the Liquidation Wave Trump's tariff policy has become a core driving factor of volatility in the Crypto Assets market. In the severe market turbulence following the policy announcement, nearly 160,000 people globally were liquidated within 24 hours on July 19, with a total liquidation amount reaching 587 million dollars, including 360 million dollars in short liquidations and 220 million dollars in long liquidations. This high volatility reflects that policy sensitivity has become a new label for Crypto Assets.

The deeper impact lies in the change of capital flow paths. As tariff policies weaken the attractiveness of dollar assets, institutional funds are accelerating their influx into the encryption field: the publicly listed company Strategy recently increased its holdings by 6,220 BTC, with total holdings surpassing 600,000 coins, and unrealized gains reaching as high as 28.1 billion dollars; at the same time, some hedge funds have begun to shift their funds towards decentralized trading platforms, with the whale users of XBIT (holding over 1000 BTC) increasing by 15% within a week. This trend validates analysts' views - the decreasing attractiveness of US Treasury bonds will be beneficial for crypto assets in the long term.

##Transformation of Regulatory Framework: From the GENIUS Act to the Rise of Decentralization As the tariff policy triggers market turbulence, the United States' Crypto Assets regulatory framework is experiencing a historic breakthrough:

Legalization of Stablecoins: On July 19, Trump signed the GENIUS Act, requiring stablecoins to be backed by USD or government bonds. Giants like JPMorgan and PayPal have already launched stablecoin pilot projects.
Regulatory Authority Clarified: The "CLARITY Act" clearly classifies decentralized tokens as commodities, regulated by the CFTC, removing compliance barriers for tokens like XRP, which drove its price to surge 18% to $3.64 on July 18.
Anti-CBDC stance: The National Defense Authorization Act includes provisions prohibiting the Federal Reserve from issuing a digital dollar without Congressional approval, reinforcing the legitimacy of decentralized finance.

This series of policies has accelerated the integration of traditional finance and the Crypto Assets ecosystem, and has also led to the explosion of decentralized platforms. In the past week, the search volume for "decentralized exchanges" surged by 120%, and platforms supporting on-chain transparent transactions, such as XBIT, have become safe havens for funds.

##Divergence in Coin Performance: Hedging Logic of Stablecoins and RWA In the market fluctuations caused by tariffs, different categories of Crypto Assets show significant differences:

Stablecoins and RWA's resilience against declines: One week after the implementation of the tariff policy, the RWA sector only dropped by 3.1%, far lower than the over 10% decline of other Crypto Assets; the weekly trading volume of tokenized gold surpassed 1 billion USD, with PAXG trading volume surging by 900%.
Mainstream coin technical divergence: Bitcoin hovered around $118,684 on July 23, with multiple analysts pointing out that it needs to hold the support level of $117,400 to target $131,200; Ethereum's RSI has entered the overbought zone, and a pullback to the $3,200-$3,400 range is seen as an ideal buying point.
Platform coins and altcoins fluctuations: BNB broke the $800 mark on July 23, hitting a historical high; ZORA token has increased nearly 300% since July 17 due to its integration with Base APP.

##Investor Strategy: Three Major Opportunities Under Dynamic Balance In the face of the dual variables of tariff policies and regulatory changes, savvy investors have adjusted their layout strategies:

Position Management: Avoid full position operations, it is recommended to maintain a maximum of 70% position, and take profits in batches for rapidly rising coins like BNB (e.g., reduce holdings by 30%)
Track Focus: Increase holdings in coins with practical application scenarios (such as XRP for cross-border payments, SOL for efficient settlement); allocate RWA assets (tokenized gold) with anti-inflation properties.
Utilizing DeFi arbitrage: Constructing a new paradigm of tariff arbitrage through dynamic collateral rate adjustments, cross-border stablecoin settlements, and other DeFi protocols.

##Future Outlook

Trump's tariff policy is like a double-edged sword—its induced short-term market turbulence, marked by a warning of risk with a liquidation amount of $376 million on July 23, has accelerated the migration of funds from traditional finance to the Crypto Assets world. With the implementation of the GENIUS Act and the advancement of the CLARITY Act, the compliance of stablecoins and the clarity of regulation for decentralized tokens have paved the way for institutional funds. In this tariff storm of 2025, strategies that combine RWA asset allocation with DeFi dynamic arbitrage are becoming a new moat for savvy investors.

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