"Trump's Tariffs Spark Global Market Plunge"

Global markets, particularly in Japan and South Korea, experienced a sharp decline on Monday, February 3, following the announcement of new tariff policies by former U.S. President Donald Trump. The Nikkei 225 index in Japan plummeted by 1052.40 points, a 2.66% decrease, closing at 38520.09 points. Similarly, the KOSPI index in South Korea fell by 64.04 points, a 2.54% drop, ending the day at 2453.33 points.

The tariffs, which include a 25% tax on Canadian and Mexican imports and a 10% tax on Chinese goods, took effect on Tuesday, February 4. Investors worldwide reacted with concern, as these geopolitical events often trigger market volatility and raise apprehensions about economic stability. The sell-off in risk assets, including stocks and cryptocurrencies, was a clear indication of the impact these tariffs had on global markets.

The crypto market, which trades around the clock, reacted swiftly to the news. Bitcoin (BTC-USD) hovered around the $95,000 level overnight, as risk-off sentiment took over. Ethereum (ETH-USD) tanked 18%, while XRP (XRP) was the biggest loser, with a 20% drop. Solana (SOL) fell 8% as the total market cap sank nearly 12% to $3.15 trillion.

Market experts attributed the sell-off to a mix of factors, including weak liquidity, panic selling, and the tariffs announced by Trump. Daniel Yan, co-founder of Matrixport, called it "another typical weak Monday," blaming Asia markets for their knee-jerk reaction to bad news. He highlighted extreme volatility, with Coinbase's ETH premium spiking to 6% while the top 100 tokens averaged a 22% loss.

Traders and investors were split over the long-term impact of Trump's tariffs on the crypto market. While some saw it as a potential buy-the-dip moment, overall sentiment appeared cautious. Jeff Park, head of alpha strategies at Bitwise, believes that the U.S. is looking for a way to weaken the dollar without crashing its ability to borrow cheaply, a kind of "