U.S. Tariffs Impact Crypto Market: Major Funds Facing Losses!

The sharp decline in the crypto market has also deeply affected major investment funds. In the last week of January, a fund that invested $242 million suffered a $51.7 million loss due to market volatility. One of the primary reasons for these losses is the panic triggered by U.S. President Donald Trump’s newly announced tariffs.

Trump had announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China. This move created uncertainty in global markets while also putting significant selling pressure on crypto assets. Among the biggest loss-makers were Ethereum, Wrapped Bitcoin, and several altcoins, with Ethereum’s sharp decline becoming one of the fund’s largest losses.

Altcoin investments also faced heavy losses. Some assets, which were acquired in large quantities, saw their prices drop sharply, resulting in multimillion-dollar losses. With double-digit declines in several cryptocurrencies, investors continue to question the impact of Trump’s policies on the crypto market.

Trump stated that while these tariffs may cause "short-term difficulties," he believes they will be beneficial for Americans in the long run. However, the ongoing market volatility continues to raise concerns among investors.