Global Financial Markets in Turmoil: Crypto Assets Market Hit Hard, Tariff Policies Raise Widespread Concerns

The global financial markets have recently experienced severe turbulence. The three major U.S. stock indices continue to trend downward, and European and Asian stock markets have also suffered heavy losses. The commodity markets have not been spared either, with prices of crude oil and gold both declining. The Crypto Assets market is likewise struggling to maintain its resilience, with Bitcoin dropping more than 10% over two days and Ethereum falling by 20%. The entire financial market presents a "green" landscape.

The root of this market turmoil can be traced back to the recent executive order signed by the U.S. President regarding "reciprocal tariffs." This executive order announces a 10% "minimum benchmark tariff" imposed by the U.S. on its trading partners, with higher tariffs on certain trade partners. This move has triggered trade frictions globally, prompting several countries and regions to take countermeasures.

Against this backdrop, global financial markets have been severely impacted. U.S. stock futures continued their decline from last week, with Nasdaq futures falling over 5% and S&P 500 futures dropping more than 4%. European stock index futures also plummeted, with the European STOXX 50 index futures down over 4% and DAX index futures nearly 5% lower. The Asian markets were no exception, with significant declines again in the Japanese and South Korean stock markets, and the Hang Seng Index recording its largest single-day drop since October 28, 1997.

The Crypto Assets market has also experienced a severe adjustment. Bitcoin's two-day drop exceeded 10%, briefly falling below $75,000. Other Crypto Assets performed even worse, with Ethereum dropping below $1,500 and SOL hitting a low of $100. According to data platform statistics, there were a total of 487,700 liquidations globally yesterday, with a liquidation amount exceeding $1.632 billion, including $1.25 billion in long liquidations and $380 million in short liquidations.

The market turmoil has raised concerns about the U.S. economy falling into recession. Several political and business leaders have expressed worries about the economic outlook for the United States. A survey shows that 69% of business leaders expect a recession in the U.S., with more than half believing that it will occur this year.

However, there are differing views in the market regarding the impact of this tariff policy. Some analysts believe that although it may cause severe fluctuations in the short term, considering the health of the balance sheets of the private sector in the United States, the probability of a long-term recession in the United States is not high.

In the face of market turmoil, many governments and central banks have begun to take action. State investment agencies in certain countries have started to enter the market to increase their holdings, attempting to stabilize market sentiment. At the same time, expectations for the Federal Reserve to potentially lower interest rates earlier are also rising.

Views among traders regarding the future of the Crypto Assets market vary. Some believe there is still downside potential in this round of sell-off, while others think the market may see a rebound. Technical analysts tend to believe that the larger trend is downward, and Bitcoin prices may decline further.

Currently, the market's focus is on the upcoming release of the Federal Reserve's March monetary policy meeting minutes, hoping to gain more policy clues from it. Against the backdrop of tense global trade relations and uncertain economic prospects, volatility in the financial markets may persist for a while. Investors need to remain vigilant and closely monitor changes in policy trends and economic data.