Global Tariff Turmoil: Nansen Urges Crypto Investors to Stay Cautious

Hang onto your hats, folks! The global markets are in a frenzy after the U.S. dropped a bombshell with its new tariff announcements. Nansen's analysts are sounding the alarm, telling investors to cool their jets and not fight the market's wild swings.

Their advice? Hold tight and wait for the dust to settle on trade talks, job numbers, and what the Fed's got up its sleeve before making any big moves.

This urgent note comes hot on the heels of President Trump's tariff blitz, starting at a hefty 10% and skyrocketing for heavy hitters like China, Japan, and Vietnam. Brace yourselves—some rates could hit a staggering 50% once the fine print kicks in. And mark your calendars: this rollercoaster ride starts as early as April 5.

Some effective rates may approach 50% once exemptions are factored in. Implementation begins as early as April 5.

Equity Sell-off

The markets didn't waste a second reacting. U.S. small caps kicked off a massive equity sell-off, crypto took a hit, and the U.S. dollar took a nosedive against major currencies. The yield curve? It's bull-flattening like crazy, screaming recession fears louder than a siren. Nansen's take? We're staring down the barrel of stagflation—growth stuck in the mud while prices keep climbing.

"We're in the thick of tariff uncertainty, and these negotiations? They're gonna drag on. We're talking a lot of countries with some seriously tangled economic issues," Nansen's Principal Research Analyst Aurelie Barthere penned in the note.

Canada and Mexico might be breathing a sigh of relief, thanks to USMCA protections, but major Asian exporters and parts of the Eurozone? They're facing some steep trade walls. Yet, surprisingly, few governments are throwing punches back. Japan's playing it cool with negotiations and fiscal boosts for exporters, while the Eurozone's chatting about everything from digital taxes to LNG imports.

Back home, the economic data's looking like a cloudy crystal ball. ISM manufacturing and services data are teetering on the edge of expansion, but that manufacturing price index? It's shooting up, waving red flags for inflation.

ADP's employment numbers are holding steady, but layoffs in auto, retail, and tech? They're flashing warning signs. Right now, markets are betting on 3–4 rate cuts by the end of 2025, but any swerve from that path could send us on another wild ride.

Crypto's Impact

And crypto? It's feeling the heat too. Bitcoin and Ethereum charts are showing signs of weakness, with "death crosses" looming on the horizon. Solana's already crashed through key weekly support levels. "This isn't the time to play hero and catch falling knives," the report warns.

Nansen's verdict? Sit this one out until the macro and policy stars align in our favor.

"Don't fight the tape," the note hammers home. "Patience is a virtue."