Donald Trump’s tariff policy could lead to a potential trade war, affecting global stocks and cryptocurrencies. April 2, known as ‘Liberation Day,’ marks the announcement of a 20% tariff on imports worth $1.5 trillion.

This may result in destabilizing effects, causing cryptocurrencies to lose over $130 billion recently, with Bitcoin (BTC) decreasing by approximately 6% and Ethereum (ETH) 11%, amidst heightened market uncertainty.

While the short-term outlook is negative for cryptocurrencies, the long-term may present a bullish scenario, driven by regulatory clarity and a pro-crypto stance from the administration.