Bill Ackman Calls for 90-Day Pause on Trump’s Tariffs Amid Crypto Market Crash

The cryptocurrency market has suffered a significant 20% drop across major digital assets like Bitcoin (BTC), Solana (SOL), Ripple (XRP), and Dogecoin (DOGE), triggered by escalating global trade tensions and President Donald Trump’s tariff announcements. Billionaire investor Bill Ackman has urged a critical 90-day pause on these tariffs, warning of an impending “economic nuclear winter” if the current trajectory continues.

• Crypto market crashes 20% due to Trump’s tariffs
• Bill Ackman calls for 90-day tariff pause
• Over $1.36 billion in crypto liquidations occur

Crypto Market Plunge

The crypto market crash has been swift and brutal, with Bitcoin, the bellwether of the crypto market, falling below the $75,000 mark—a stark reminder of the fragility of digital assets amidst global economic uncertainty. Solana, Ripple, and Dogecoin have each seen their prices tumble by around 20% in the last 24 hours. For Ripple enthusiasts, the pain is particularly acute as XRP has fallen below its 200-day moving average, a long-term trend indicator, trading near $1.70. Meanwhile, Solana investors are feeling the sting as SOL drops below the $100 threshold and its 50-day moving average, a short-term trend indicator.

Impact of Trump’s Tariffs

Trump’s tariff announcements, including a 25% levy on vehicle imports, a minimum 10% tariff on all imports, and so-called “reciprocal tariffs,” have sent shockwaves through the markets. The effective US import tax rate has soared to 22% under Trump, the highest since 1910, according to the Economic Times. This aggressive tariff policy has not only spooked crypto investors but has also led to a broader market sell-off, with S&P 500 futures falling 5.98%, Nasdaq 100 futures sliding 6.2%, and Dow futures dropping 5.5%.

The impact of these tariffs extends beyond just the crypto market. Bitcoin mining operations, crucial to the stability and security of the Bitcoin network, could face increased costs due to the tariffs on importing mining equipment. This could lead miners to slow their activity or even relocate, potentially affecting the decentralization and security of the network. Moreover, the potential effects on the tech sector, particularly through the increased cost of rare minerals used in tech and crypto mining equipment, could have broader implications for the interconnected tech and crypto industries.

Bill Ackman’s Response

In the midst of this turmoil, Bill Ackman, a billionaire investor and previously a Trump supporter, has emerged as a vocal critic of the tariff policies. In a bold move, Ackman has called for a 90-day pause on the tariffs, warning that the current trajectory could lead to an “economic nuclear winter,” which means a severe economic downturn.

“This is not what we voted for. Business is a confidence game. The president is losing the confidence of business leaders around the globe.” – Bill Ackman

Ackman’s warning underscores the severity of the situation, as he fears the tariffs could trigger a severe economic downturn.

Future Implications

The crypto market’s reaction to Trump’s tariffs raises questions about Bitcoin’s role as a safe haven during crises. Historically, Bitcoin has shown a correlation of about 40% with the NASDAQ, but it can also decouple and act as a safe haven during economic turmoil, as noted by HackerNoon. The coming days will be crucial in determining whether Bitcoin continues to serve as a refuge or remains closely tied to traditional markets.

Some might argue that the tariffs are necessary to address trade imbalances, and others may see the current crypto market drop as a buying opportunity. However, the high-risk nature of cryptocurrencies has left them particularly vulnerable to the market uncertainty caused by the tariff news, resulting in a significant hit to long-positioned futures traders.

Key Questions and Takeaways

• What caused the recent drop in cryptocurrency prices?

  The recent drop in cryptocurrency prices was primarily triggered by escalating global trade tensions due to Trump’s tariff announcements, leading to market uncertainty and a shift to safer investments.

• How did Bill Ackman respond to Trump’s tariff policies?

  Bill Ackman, a billionaire investor and Trump supporter, publicly urged the administration to pause the tariff escalation for 90 days, warning that the current trajectory could lead to an “economic nuclear winter” and criticizing the tariff formula as misguided and economically risky.

• What was the impact of the market crash on cryptocurrency liquidations?

  The market crash led to over $1.36 billion in cryptocurrency liquidations in the past 24 hours, with long-positioned futures traders, particularly those holding Bitcoin longs, suffering significant losses amounting to more than $392 million.

• How did the stock market react to Trump’s tariff announcements?

  The stock market reacted negatively to Trump’s tariff announcements, with S&P 500 futures falling 5.98%, Nasdaq 100 futures sliding 6.2%, and Dow futures dropping 5.5%, indicating a chaotic start to the trading week.

• What technical levels were breached by XRP and SOL during the market downturn?

  During the market downturn, XRP fell below its 200-day moving average, trading near $1.70, while SOL dropped below the $100 mark and its 50-day moving average.

As we navigate this volatile landscape, the call for a pause on tariffs by influential figures like Bill Ackman serves as a stark reminder of the potential for an “economic nuclear winter” if the situation isn’t addressed. The coming days will be crucial in determining the future trajectory of both the crypto market and the global economy at large.