[Crypto Market Update] Bitcoin Plummets Due to Trump's 'Tariff Bomb'... ₩750 Billion Liquidated in a Day

# U.S. Tariff Policy Announcement Sends Bitcoin and Broader Digital Asset Market into Decline The global cryptocurrency market, including Bitcoin(BTC), faced significant pressure following an announcement by the United States to impose a minimum 10% tariff on all imports. This sweeping policy has spurred widespread market sell-offs. As of 8:50 a.m. on November 3 (KST), Bitcoin was trading at KRW 123.4 million on Upbit, South Korea's largest cryptocurrency exchange. This represents a 2.61% drop (KRW 3.259 million) compared to 24 hours prior. On Binance, the world's largest digital asset exchange, Bitcoin saw a sharper decline of 3.01%, falling to $82,701 during the same timeframe. Other major cryptocurrencies were similarly affected, with Ethereum(ETH) dropping 5.77% to $1,801 and XRP(XRP) sliding 5.79% to $2.0226. The bearish trend is reflected in liquidation data. According to crypto analytics platform Coinglass, Bitcoin alone witnessed approximately $180.64 million (KRW 265.1 billion) in liquidated positions over the past 24 hours, with 64% of these being short positions. For the entire cryptocurrency market, around $511.52 million (KRW 750 billion) worth of positions were liquidated, underscoring the market's sensitivity and heightened risk-aversion. # Trump Administration Unveils Comprehensive Tariff Strategy The market downturn was triggered by U.S. President Donald Trump’s “reciprocal tariff” policy announcement, delivered during a press event at the White House Rose Garden on November 2. Trump declared a blanket 10% baseline tariff on all imports, with additional customized reciprocal tariffs to be imposed on key trading partners, effective November 9. The initial 10% tariff will roll out earlier, starting November 5. Major trading partners face steep differential tariff rates based on country-specific terms: South Korea (25%), China (34%), Vietnam (46%), Taiwan (32%), the European Union (20%), and Switzerland (31%). Trump framed this policy not merely as a trade measure but as a fundamental overhaul of America’s taxation system. "From 1789 to 1913, the United States thrived under a tariff-based revenue system. Introducing income tax was a mistake," Trump remarked, reiterating his vision to eliminate the IRS and fund the federal government entirely through import tariffs, a notion he had floated during last year’s election campaign. Commerce Secretary Howard Lutnick publicly supported the initiative, stating, "Tariffs protect American workers and can strengthen our economy." This administration-wide alignment reflects a high-stakes political commitment to executing this plan. # Market Participants Express Skepticism However, the market’s response has been overwhelmingly negative. Singapore-based asset management firm QCP Capital critiqued the strategy as an extreme example of brinkmanship, likening it to Trump’s “Art of the Deal” negotiation tactics. "In chasing more favorable trade terms, the U.S. risks isolating itself," QCP noted. They warned that America’s trading partners might unify against these measures, potentially creating more significant headwinds for the U.S. economy. QCP further emphasized that while risk assets globally could face immediate pressures, over time, areas outside the U.S. might gain strength. "There is even the possibility of global markets reorganizing around regions other than the U.S., shifting away from their current dependence on the U.S. economy," they added. # Investor Sentiment Plummets Amid Market Stress Reflecting the heightened concern, the Alternative’s Fear & Greed Index, a widely-used gauge of sentiment in the digital asset market, dropped sharply to 25 (Extreme Fear) from the prior day’s reading of 44. The index, which ranges from 0 (indicative of strong selling pressure) to 100 (representing bullish momentum), underscores a surge in risk aversion among cryptocurrency investors during this period of uncertainty. The combination of geopolitical tensions, regulatory shake-ups, and the newly announced tariff regime highlights a challenging environment for investors navigating the cryptocurrency market. With potential macroeconomic ripple effects expected, the coming weeks will likely remain turbulent for both digital and traditional markets alike.