Import Duties Cause Turmoil in Financial Markets

Every week, Amdax summarizes what’s happening in the crypto market for you. Want to dive deeper? Click on the links in this email for more insights.

This newsletter is a co-production with our partner, Bitcoin Alpha. 

Market Update 

Stay informed in three steps:

1. U.S. import duties trigger market declines
President Trump’s new import duties have caused significant turmoil in financial markets. This was reflected in global stock prices, with the biggest drops since the Covid crash in 2020. The concerns are not only economic but also geopolitical. The coming weeks will reveal whether exceptions and deals will follow, or if this trend will continue.

2. Bitcoin follows the downward trend
Bitcoin is not immune to the financial market downturn. Although the narrative of ‘digital gold’ should gain strength in times of uncertainty, its price has declined alongside stocks in recent days. Looking at the bigger picture, the current drop of about 30% aligns with corrections from previous cycles. Nevertheless, if financial markets remain under pressure, bitcoin may fall further.

3. Ether and altcoins are hit even harder
In bitcoin’s wake, ether and other altcoins have also lost ground—more so than bitcoin itself. This fits the current climate of declining liquidity and low risk appetite. What stands out is ether’s persistent weakness compared to bitcoin. As long as macroeconomic uncertainty persists, broad interest in altcoins will remain absent. For now, caution remains warranted.

News Overview

Signal from the noise:
 

• Ripple acquires Hidden Road for $1.25 billion
  Prime brokerage firm Hidden Road is getting a new owner: crypto company Ripple. The acquisition fits Ripple’s strategy to expand institutional services and integrate the RLUSD stablecoin into traditional financial infrastructure. Hidden Road processes over $3 trillion in transactions annually for more than 300 institutional clients. The deal underscores how crypto firms are increasingly bridging into traditional financial markets, signaling growing trust in the sector. Completion is expected in Q3 2025, pending regulatory approval.
   
• Justin Sun declares stablecoin issuer First Digital Trust bankrupt.
  According to him, the former custodian of TUSD reserves cannot repay client funds. Part of the reserves disappeared in 2022 into a dubious fund in Dubai. Sun, who quietly rescued TUSD with extra liquidity, is now publicly lashing out. While not formally targeting FDUSD—the new stablecoin launched by parent company First Digital Group—the attack does cast a shadow over its recent rise. The past is knocking at the door just as the stablecoin battle heats up again.
   
• American construction workers use crypto more than bankers.
  According to the new State of Crypto Holders Report (PDF), 12% of crypto holders work in construction, compared to 7% in the financial sector. Also notable: nearly 40% use crypto to buy everyday goods and services, and 76% say they trust it more than traditional banks. In short, crypto is no longer a niche—it has become a tool, the report concludes.
   
• Trump sticks to his tariff strategy despite plunging markets.
  “Sometimes you have to take medicine,” he said Monday in response to the major market declines following his new import duties. The S&P 500 is down 14% since the start of the year, the Nasdaq 19%. Still, Trump calls the tariffs a “beautiful sight” and believes they’ll eventually bring foreign leaders to the table. Critics, including Bill Ackman, fear an economic cold snap. The markets have already rendered their verdict; Trump has not.
   
• Even Jerome Powell didn’t see this tariff blow coming.
  The Fed chairman called Trump’s new duties “larger than expected” and warned they would drive inflation and slow growth. A rare moment where interest rate policy is overtaken by geopolitics. Powell is keeping his powder dry for now, but the signal is clear: it’s not just markets—central bankers are being caught off guard too. And that makes the playing field suddenly a lot more unpredictable.
   

Amdax’s Take

The new U.S. import duties are causing unrest in the markets. Investors are pulling back, risk appetite is falling, and prices are declining. Uncertainty is high, and it’s unlikely to change any time soon. Until there is clarity on exceptions or further escalation, the coming months will be marked by caution, not euphoria.
Yet beneath the surface, much is happening. Ripple’s acquisition of Hidden Road shows how crypto is embedding itself deeper into the traditional financial world. While sentiment wavers, the foundation remains strong.