When investors struggled to understand why the crypto market entered a prolonged sideways trend and downturn after the October crash in 2025, data from the Kiel Institute for the World Economy in Germany revealed a overlooked key insight: up to 96% of U.S. tariff costs are ultimately borne by consumers and businesses within the United States. This amounts to a massive and invisible "tax" system quietly draining liquidity from the market.
Market Pulse: Reviewing 2025, How Tariffs Dominated the Crypto Market's Heartbeat
To understand the current stagnation, one must look back at the turbulence of the past year. In 2025, the tariff policies of the Trump administration became one of the most significant macro narratives in the crypto market, with fluctuations triggered by these policies rivaling any technological change or regulatory event. Unlike conventional economic data, tariff announcements often come unexpectedly, directly impacting global growth and trade expectations, and quickly transmitting to the crypto markets, which are highly sensitive to liquidity.