TL;DR
Trump’s “Liberation Day” tariffs triggered a $140 billion crypto crash, exposing the market’s vulnerability and reminding us that speculative bubbles always burst.
Story
Liberation Day? More like Liquidation Day. On April 2nd, 2024, Trump’s “reciprocal tariffs” announcement triggered a $140 billion crypto crash. Bitcoin, briefly at $87,000, plummeted. The market, supposedly decentralized, acted like a puppet of traditional finance.
How? Like a house of cards built on hype. Remember 2008? Overleveraged bets. This time, it’s crypto. When big players get spooked, they dump assets, triggering panic selling. Boom, $160 billion gone in hours. A slight “recovery” followed—like putting a band-aid on a broken bone.
Impact? “Liberated” from your money, as one Reddit user quipped. Imagine losing your retirement in a meme-fueled flash crash. This is the wild west of finance. No FDIC, no safety net.
Lesson? Don’t fall for “decentralization” myths. Crypto remains tied to the larger financial system. Due diligence is vital.‣ Due diligence: Researching before investing.
This echoes history. The Dutch Tulip Mania, the South Sea Bubble, Enron—speculative bubbles burst. Crypto is no different. Don’t let FOMO drive your investment decisions.‣ FOMO (Fear Of Missing Out): Herd mentality in investing, leading to bad choices.
Sadly, these lessons will be forgotten. Greed fuels the next bubble, until it, too, pops. It’s not if, but when.
Advice
Don’t chase hype. If “guaranteed returns” sound too good to be true, they are. Always DYOR.