News 
February 3, 2025 
3 min. 
The U.S. stock futures recently recorded a steep decline in the early hours of Monday as President Donald Trump imposed new trade tariffs on several countries, including Mexico, China, and Canada. This recent development has left investors grappling with the new government’s decision as the crypto market experiences a decline with NASDAQ futures recording 2.7% plunge.
Wall Street Braces for President Trump Impact
The magnitude of the market reaction reflects deep concerns about the broader economic implications of these trade measures. The Russell 2000, typically seen as a benchmark for domestic economic health, took the heaviest hit with a 3.2% decline. Meanwhile, the S&P 500 futures dropped 2%, and the Dow Jones Industrial Average futures fell 1.5%, painting a comprehensive picture of market-wide anxiety.
The catalyst for this market turbulence stems from President Trump’s February 1st announcement of substantial tariffs: a 25% levy on Canadian and Mexican imports, coupled with a 10% tariff on Chinese goods. Deutsche Bank’s head of FX research, George Saravelos, emphasized the severity of the situation, noting that the announced tariffs were “roughly three times larger than what was envisaged,” necessitating a significant repricing of trade war risk.
Crypto Markets Face Parallel Pressure
The ripple effects of the trade war have extended beyond traditional markets, with the cryptocurrency sector experiencing its own dramatic downturn. The total crypto market capitalization plummeted by 13%, shedding an astronomical $450 billion in just 24 hours and reaching its lowest point since mid-November at $3.12 trillion.
However, some analysts see a potential silver lining for Bitcoin amidst the economic turbulence. Jeff Park, head of alpha strategies at Bitwise, suggests that the trade war’s long-term effects, including a weakening dollar and lower yields on U.S. government securities, could drive Bitcoin prices “violently higher.” This perspective highlights the complex interplay between geopolitical tensions, traditional markets, and the evolving cryptocurrency space.
