After the United States announced a new round of trade tariffs, the cryptocurrency market immediately showed a series of complex reactions. In the short term, this news triggered a sharp cooling of market sentiment. The price of Bitcoin quickly fell to around $114,800, with a decrease of about 3% within 24 hours. Other major cryptocurrencies such as Ethereum, SOL, and XRP saw declines as high as 8%. Investors are turning to relatively safe assets such as U.S. Treasury bonds or dollar deposits, reducing their allocation to high-risk assets like cryptocurrencies. At the same time, the correlation between cryptocurrencies and traditional stock markets has also significantly increased, especially the relationship between Bitcoin and the Nasdaq index and the S&P 500 index.

However, in the medium to long term, this trade friction may bring some structural opportunities for the encryption market. Ongoing tariff policies may exacerbate inflation expectations and potentially weaken the global reserve currency status of the dollar. Against this backdrop, the demand for Bitcoin as "digital gold" may rise. If tariffs lead to an economic slowdown while inflation remains high, non-sovereign assets like Bitcoin may be favored for their anti-inflation characteristics.

It is worth noting that in order to avoid tariffs, some major mining machine manufacturers have begun to establish factories in the United States, which may change the global cryptocurrency mining supply chain structure and increase the cost and market competitiveness of domestic mining machines in the United States.

Interestingly, in an environment where policy uncertainty is increasing, it may actually enhance the market's interest in "sovereign-outside" assets. Some investors are beginning to view stablecoins or Bit as potential alternative reserve assets.

The impact on Bitcoin and other cryptocurrencies may vary. While the entire crypto market may experience a fall in the short term, Bitcoin may have stronger rebound potential if the US dollar continues to weaken and the economy shows signs of stagflation. In contrast, other cryptocurrencies may be more susceptible to fluctuations in the stock market and policy changes.

Overall, although trade tariffs have caused short-term market turbulence, they may also create new opportunities for the encryption market. Investors need to closely monitor policy changes and market trends, seeking a balance between risk and opportunity.