Could Trump’s Trade War Trigger the Next Crypto Collapse? What the Experts Aren’t Telling You

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The recent cryptocurrency market crash, resulting in over $2 billion in liquidations, is attributed to traditional finance events rather than actions from within the crypto community, according to Evgeny Gaevoy, CEO of Wintermute. The downturn occurred after former U.S. President Donald Trump signed an executive order imposing import tariffs on goods from China, Canada, and Mexico, sparking fears of a global trade war.

Crypto traders often suspect market makers and institutional participants of intentionally crashing prices for strategic purchasing opportunities. However, Gaevoy emphasizes that recent significant market movements have been linked to external traditional finance events, such as Trump’s tariffs and other similar macroeconomic factors. He suggests that recognizing this interconnectedness between the crypto market and traditional financial events is crucial for traders’ success.


Ryan Lee, the chief analyst at Bitget Research, supports this notion, highlighting that concerns over a potential global trade war significantly influenced the market downturn. Meanwhile, Bybit CEO Ben Zhou estimates that total crypto liquidations may have surpassed $10 billion, suggesting a more extensive impact than initially reported.

Amid accusations that large crypto firms are manipulating prices to instigate market crashes, Gaevoy clarified that Wintermute does not engage in such practices, describing their market activities as routine inventory management between exchanges. Despite market makers not being the direct cause of the crash, they can influence selling pressure during downturns. Historical data from Scopescan shows firms like Wintermute and others have previously sold large quantities of Ether during market declines, reflecting routine operational moves rather than intentional market manipulation.