News 
March 27, 2025 
4 min. 
The cryptocurrency market experienced a slight downturn on March 27, following a major policy move from Donald Trump that shook the global auto industry.
Bitcoin slipped below $86,000, while the overall crypto market capitalization, as reported by CoinMarketCap, dropped 1.67% to $2.83 trillion. Meanwhile, the crypto fear and greed index remained in the “fear” zone at 38, signalling continued market uncertainty.
This decline in digital assets mirrored losses in traditional financial markets. Futures linked to the Dow Jones, Nasdaq 100, and S&P 500 all posted declines of over 0.70%, reflecting broader economic concerns.
The primary factor behind the market pullback was Trump’s sweeping decision to impose tariffs on all vehicle and auto part imports into the U.S. These tariffs are set to impact both foreign and domestic automakers due to additional duties on essential materials like steel and aluminium.
As a key pillar of the U.S. economy, the auto sector could face serious disruptions. Industry giants such as General Motors, Ford, and Stellantis collectively employ over 150,000 workers, excluding their vast supplier and dealership networks. With higher costs looming, automakers may struggle to maintain profitability, potentially leading to workforce reductions.
Additionally, these tariffs are expected to drive up vehicle prices, discouraging consumer spending. Recent data suggests a sharp drop in U.S. consumer confidence, which has plummeted by 17 points over the past three months.
Trump is expected to reveal further details on his broader trade strategy soon, with additional tariff measures targeting key imports. Market participants will be watching closely, as these decisions could have far-reaching effects on both traditional and digital asset markets.
How Trump’s Trade War Could Spark a Crypto Rally
Donald Trump’s aggressive tariff policies could be a major economic disruptor, resembling a Black Swan event due to their unpredictability and wide-reaching effects. His proposed 25% tariffs on imports from Canada and Mexico threaten to upend decades of tariff-free trade among the three nations, potentially triggering economic instability.
While many associate recessions with financial turmoil, history suggests that such downturns could actually fuel a surge in Bitcoin and altcoin prices. Economic slowdowns often prompt governments and central banks to intervene with expansionist fiscal and monetary policies. For example, during the 2008–09 financial crisis, the Federal Reserve injected $700 billion into the economy, and in response to the COVID-19 pandemic, it deployed trillions in stimulus measures.
If the economy weakens in 2025, similar interventions are expected. Trump may introduce targeted relief packages for industries hit hardest by his own tariffs, such as agriculture and automotive manufacturing. Meanwhile, the Federal Reserve could step in with rate cuts and quantitative easing to stabilize financial markets.
With the current benchmark interest rate standing at 4.50%, the Fed has significant room to lower rates and inject liquidity. A shift toward lower borrowing costs and increased risk appetite could set the stage for another crypto bull market – similar to the explosive rally seen in 2020–2021. As traditional markets grapple with uncertainty, Bitcoin and altcoins may emerge as attractive alternatives for investors seeking refuge from monetary policy shifts and economic turbulence.
