Crypto Tariff Impact: Why Markets Took a Hard Hit

Cryptocurrency markets have faced severe losses following former President Donald Trump’s tariff announcements, with leveraged positions amplifying the sell-off. Unlike traditional assets, crypto markets operate 24/7, leading to heightened volatility.

Crypto Tariff Impact Hits Digital Assets Hard

While global markets reacted negatively to the tariff news, digital assets took a particularly hard hit. Bitcoin (CRYPTO:BTC) saw a decline of up to 6.8%, while other major tokens like XRP (CRYPTO:XRP) and Solana (CRYPTO:SOL) suffered double-digit losses.

Ethereum (CRYPTO:ETH) experienced the sharpest drop, losing as much as 25% before recovering slightly. This sell-off erased all of its post-election gains and pushed it to a five-month low.

Why Crypto Reacted More Sharply Than Stocks

Trump’s tariff policy announcement targeted Canada, Mexico, and China, affecting investor sentiment across various sectors. However, the crypto tariff impact was more pronounced due to three key factors:

Continuous Trading: Unlike stock markets, crypto never sleeps. The weekend sell-off accelerated, leading to further declines as markets reopened Monday.

High Leverage: Many traders use margin to amplify gains, but during downturns, forced liquidations accelerate losses.

Ethereum’s Role in DeFi: Ethereum is the backbone of decentralized finance (DeFi), meaning automated liquidations disproportionately affected ETH.

Massive Liquidations Triggered by Tariff Fears

According to Matt Mena, a crypto research strategist at 21Shares, more than $2.2 billion in crypto positions were liquidated within 24 hours. This figure surpasses liquidation events seen during the collapses of FTX and Terra Luna in 2022.

Zack Shapiro, head of policy at the Bitcoin Policy Institute, noted that Ethereum’s outsized losses stem from its deeper integration into DeFi platforms. Many decentralized exchanges and market makers rely on ETH, making it especially vulnerable.

Will Bitcoin Hold Above Key Support?

Bitcoin (CRYPTO:BTC) has hovered near the critical $90,000 level. Standard Chartered has warned that if BTC drops below this threshold, it could trigger a broader market downturn.

Some analysts see this correction as a necessary market reset. Mena suggests that the crypto sector had been overheating, particularly with the rise of Trump-themed meme coins. He believes the current sell-off could help stabilize the market.

“Regardless, the market needed a cooldown, and this tariff-driven sell-off may have just been the catalyst to force a reset,” Mena said.

What’s Next for Crypto Markets?

Despite the sharp drop, some investors see opportunities. Historically, crypto has shown resilience, rebounding from major sell-offs driven by external shocks. Traders are now watching for signs of stabilization, particularly in Bitcoin, which often sets the trend for the broader market.

One key factor will be how institutional investors react. Firms like BlackRock (NYSE:BLK) and Coinbase (NASDAQ:COIN) have been increasing their exposure to digital assets through spot Bitcoin ETFs and custody services. If institutional demand remains strong, it could help support prices.

Additionally, regulatory clarity may play a role. Trump’s policies on tariffs have shaken markets, but his stance on crypto remains a wildcard. Some speculate that his administration could take a more favorable approach to digital assets, which might attract more institutional investors in the long run.

Investor Strategies in a Volatile Market

For investors navigating this volatility, risk management is crucial. Analysts suggest that dollar-cost averaging (DCA) could be a safer strategy during uncertain times. This method involves buying crypto in regular increments rather than making large, one-time purchases, reducing the risk of buying at peak prices.

Additionally, diversification remains key. While Bitcoin and Ethereum dominate the market, alternative assets such as stablecoins and blockchain-based equities, including companies like Marathon Digital Holdings (NASDAQ:MARA), could offer stability in turbulent periods.

Final Thoughts

The crypto tariff impact underscores how external economic policies can shake digital markets. While some analysts view the sell-off as a short-term correction, traders remain cautious as uncertainty around Trump’s trade policies continues.

Long-term investors may see this as a buying opportunity, while short-term traders brace for further volatility. The coming weeks will be critical in determining whether the market stabilizes or if another leg downward is in store.

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ZK International’s xSigma Corp. Plans to Launch xSigma Wallet: A Crypto Platform for Buying Memecoins & Digital Assets with Credit Cards

WENZHOU, China, Jan. 31, 2025 /PRNewswire/ — ZK International Group Co., Ltd. (Nasdaq: ZKIN) (“ZK International” or the “Company”), is pleased to announce that its subsidiary, xSigma Corp., continues its commitment to technological advancements by planning the launch of xSigma Wallet, a next-generation crypto banking wallet that will enable users to seamlessly buy memecoins and cryptocurrencies using Visa / Mastercard credit cards, Apple Pay, PayPal, and Google Pay.


(PRNewsfoto/ZK International Group Co., Ltd.)

As part of this initiative, xSigma Wallet will also introduce its own xSigma Visa credit card, allowing users to top up their balance with crypto, providing greater accessibility and flexibility for digital asset holders.

A FinTech Platform Built for Security & Convenience

xSigma Wallet will be regulated in the U.S. and serve customers in over 170 countries, ensuring compliance with financial regulations while providing users with a secure and trusted digital asset experience. The wallet is being developed by the xSigma team, with regulated financial services provided by a white-label provider.

Key Features of xSigma Wallet:

  • Buy Crypto & Memecoins – Users can purchase popular cryptocurrencies instantly with credit cards and Apple Pay.
  • xSigma Visa Credit Card – A crypto-backed Visa card, enabling users to spend their digital assets easily.
  • Secure & Regulated – Registered in the U.S., ensuring a compliant financial framework.
  • White-Labeled Platform – Designed to be branded and operated under xSigma’s ecosystem.
  • Non-Custodial Storage – xSigma will offer a secure, non-custodial way to store memecoins and major cryptocurrencies.
  • On-Ramp Services – The wallet will provide simple fiat-to-crypto on-ramp services, allowing users to buy memecoins with minimal effort.
  • Strategic Partnerships – xSigma plans to partner with various memecoins to become their official on-ramping partner.

Strong Market Demand for Memecoins & On-Ramp Services

The recent traction of Trump’s memecoin and Moonshot, a competing app that processed a record-breaking $400 million in trading volume on day one, indicates a strong demand for seamless on-ramp services for assets like memecoins. xSigma Wallet aims to meet this growing need by offering a frictionless and compliant way to purchase, store, and spend digital assets.

“At xSigma, we are committed to driving innovation in the digital asset space,” said Mr. Huang Jiancong, Chairman of ZK International. “The launch of xSigma Wallet is a major step forward in providing users with a secure, regulated, and user-friendly way to engage with cryptocurrencies and memecoins. As the market evolves, we aim to set the standard for compliant and seamless on-ramp solutions.”

Looking Ahead

The launch of xSigma Wallet represents another milestone in xSigma Corp.’s strategy to stay relevant in blockchain innovation and the digital infrastructure of tomorrow. More details, including launch dates and platform availability, will be announced in the coming months.

For more information please visit www.ZKInternationalGroup.com. Additionally, please follow the Company on TwitterFacebookYouTube, and Weibo. For further information on the Company’s SEC filings please visit www.sec.gov.

About xSigma Corp.

xSigma Corp. is a blockchain R&D lab and a subsidiary of ZK International Group Co., Ltd. (Nasdaq: ZKIN). The company focuses on decentralized finance (DeFi), blockchain-based payments, and financial technology innovations.

About ZK International Group Co., Ltd.:

ZK International Group Co., Ltd. is a China-based engineering company building and investing in innovative technologies for the modern world. With a focus on designing and implementing next-generation solutions through industrial, environmental and software engineering, ZKIN owns 28 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards. 

ZKIN’s core business is to engineer and manufacture patented high-performance stainless steel and carbon steel pipe products that effectively deliver high quality, highly-sustainable and environmentally sound drinkable water to the Chinese, Asia and European markets.  ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee.  It has supplied stainless steel pipelines for over 2,000 projects, which include the Beijing National Airport, the “Water Cube” and “Bird’s Nest”, which were venues for the 2008 Beijing Olympics.  ZK International is preparing to capitalize on the $850 Billion commitment made by the Chinese Government to improve the quality of water, which has been stated to be 70% unfit for human contact.  

Safe Harbor Statement 

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict and many of which are beyond the control of ZK International.  Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties, as well as other risk factors that are included in the Company’s filings with the U.S. Securities and Exchange Commission. Although ZK International believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized.  In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by ZK International or any other person that their objectives or plans will be achieved. ZK International does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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SOURCE ZK International Group Co., Ltd.

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Lavenhill Securities Limited Leverages SpaceX Momentum to Explore Cryptocurrencies and Blockchain Technology

CENTRAL, Hong Kong, Jan. 31, 2025 /PRNewswire/ — Lavenhill Securities Limited, a global financial services firm, is capitalizing on the groundbreaking momentum of SpaceX to expand its focus on cryptocurrency and blockchain technologies. Inspired by SpaceX’s relentless pursuit of innovation in space exploration, Lavenhill Securities aims to harness the transformative power of decentralized digital assets to revolutionize the financial sector.

SpaceX Soars to New Heights

SpaceX’s valuation has reached $350 billion, making it the most valuable startup globally. After a recent tender offer, investors are benefiting from a significant increase in valuation compared to the earlier $210 billion figure, currently pricing them at $185 per share.

Cryptocurrencies for Global Financial Solutions

Recognizing the growing popularity of cryptocurrencies, Lavenhill Securities is looking at the potential to simplify cross-border transactions, save costs, and increase accessibility for customers globally. This strategic emphasis complements Lavenhill’s commitment to provide cutting-edge solutions in a continuously changing financial world. Improving Decentralized Finance (DeFi) with AI.

Commitment to Innovation and Progress

Lavenhill Securities Limited encourages financial innovation while maintaining security, transparency, and sustainability. The company’s innovative approach reflects SpaceX’s vision for the future via cutting-edge technology.

 “At Lavenhill, we are inspired by SpaceX’s ability to redefine boundaries,” said Theodore Grayson, Sr. Finance Director at Lavenhill Securities.  “This momentum motivates us to embrace blockchain and cryptocurrencies as transformative tools that will not only redefine finance but also enable us to explore possibilities far beyond Earth.”

About Lavenhill Securities Limited

Lavenhill Securities Limited is a global financial services firm specializing in innovative solutions across investment banking, asset management, and financial technologies. Committed to driving progress, Lavenhill continuously adopts advanced technologies to shape the future of finance.

For media inquiries, please contact:
Catherine Yip
Public Relations
Website: https://lavenhillsecuritiesl.com
Phone: +85258030864
Address: MW Tower, 111 Bonham Strand, Sheung Wan, Hong Kong

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SOURCE Lavenhill Securities Limited

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Options Market Recovers From Monday’s Sell-Off: Bybit and Block Scholes Analysis

DUBAI, UAE, Jan. 31, 2025 /PRNewswire/ — Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released the latest crypto derivatives report, published weekly with Blocks Scholes.

This week’s report highlights a significant risk-off event early in the week, as DeepSeek’s LLM announcement coincided with sharp declines across major indices and crypto markets. Despite this volatility, open interest in perpetual swaps remained stable, with funding rates momentarily turning negative before recovering. The options market also saw increased trading activity during the sell-off, even as forward-looking volatility expectations declined.

Key Insights:

  • BTC Open Interest Shows Minimal Movement – Despite the highest single-day trading volumes in BTC call options this month – reaching nearly $250 million during the spot price decline – volatility has continued to decline in both realized and implied terms. Short-tenor options are exhibiting lower volatility with a neutral skew, while longer-dated volatility smiles maintain a bullish bias towards out-of-the-money (OTM) calls, continuing a trend seen since the election.
  • ETH Options Maintain Bullish Momentum – Trading volume for ETH options has surged to its highest levels in a month, with open interest remaining heavily weighted toward calls. While the global market sell-off briefly impacted short-tenor ETH volatility smiles, ETH options have continued to trade at higher volatility levels relative to BTC. Despite ETH’s spot recovery lagging behind BTC’s, its options market remains strong.
Sources: Bybit, Block Scholes
  • Solana Options See Solid Open Interest – Following a price rally spurred by the launch of two presidential meme coins, Solana (SOL) has retraced alongside the broader crypto market. However, open interest in puts and calls remains elevated, with trading activity surpassing pre-rally levels. Stable levels of newly opened put options suggest strategic protective buying to hedge profitable long positions in other instruments.

The Bybit x Block Scholes Crypto Derivatives Analytics Report continues to provide actionable insights for traders and investors, offering a detailed breakdown of market trends and trading dynamics.

Access the Full Report here.

#Bybit / #TheCryptoArk /#BybitResearch

About Bybit

Bybit is the world’s second-largest cryptocurrency exchange by trading volume, serving a global community of over 60 million users. Founded in 2018, Bybit is redefining openness in the decentralized world by creating a simpler, open and equal ecosystem for everyone. With a strong focus on Web3, Bybit partners strategically with leading blockchain protocols to provide robust infrastructure and drive on-chain innovation. Renowned for its secure custody, diverse marketplaces, intuitive user experience, and advanced blockchain tools, Bybit bridges the gap between TradFi and DeFi, empowering builders, creators, and enthusiasts to unlock the full potential of Web3. Discover the future of decentralized finance at Bybit.com.

For more details about Bybit, please visit Bybit Press
For media inquiries, please contact: media@bybit.com
For updates, please follow: Bybit’s Communities and Social Media

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Nearly One-Quarter of Financial Advisors Report Majority of Clients Now Own Digital Assets, DACFP Survey Shows

Q4 2024 Advisor Pulse Survey reveals significant increase in crypto ownership and recommendations

GREAT FALLS, Va., Jan. 30, 2025 /PRNewswire/ — Twenty-four percent of financial advisors report that more than half their clients now own digital assets, marking a 25% increase from the previous quarter, according to the latest Advisor Pulse Survey conducted by the Digital Assets Council of Financial Professionals (DACFP) and sponsored by Franklin Templeton Digital Assets.

The survey also reveals that 20% of advisors now recommend crypto to all their clients – nearly double the percentage reported in Q3 2024. Additionally, 65% of advisors have recommended crypto to 10% or more of their clients, with more than a third (35%) recommending it to at least half of their clients.

“These findings demonstrate a significant acceleration in crypto adoption among both advisors and their clients,” said DACFP Founder Ric Edelman, CBDA. “The steady increase in allocation recommendations suggests growing advisor confidence in digital assets as a portfolio component.”

Among advisors who recommend crypto, the most common allocation remains 2% of assets, recommended by almost a third of advisors (30%). Another 20% recommend a 5% allocation, while advisors recommending larger allocations of 10%-14% increased by 3% since Q3.

For advisors not yet recommending crypto, 46% plan to do so, with 33% indicating they will begin within six months. Of those planning to start, 90% intend to recommend allocations of 1% to 5%.

To support advisors in this rapidly evolving space, DACFP and Franklin Templeton have partnered to offer “Blockchain, Bitcoin, and Beyond,” an educational course providing foundational knowledge for financial professionals looking to incorporate digital assets into their practice.

Methodology
The survey was conducted between October and December 2024, with 266 financial professionals participating. Nearly two-thirds (62%) of respondents are financial advisors affiliated with independent RIA firms. Nine in 10 (88%) have more than 10 years of industry experience, with 65% having two decades of experience. Most respondents (63%) primarily serve clients with assets ranging from $500,000 to $3.5 million, and 34% manage more than $100 million in assets.

For detailed survey findings, visit https://dacfp.com/whitepapers/.

About DACFP
Founded by Ric Edelman, the Digital Assets Council of Financial Professionals is the leading provider of crypto education. DACFP connects the financial services industry and digital assets communities with leading experts via live and online events, webinars, blogs and other educational content. Its flagship program, the Certified in Blockchain and Digital AssetsSM, is the first and largest certification program of its kind—an online self-study program featuring a world-class faculty and 18 Continuing Education credits. Thousands of financial professionals from 37 countries have enrolled.

About Franklin Templeton Digital Assets
Franklin Templeton Digital Assets has been active in the digital asset ecosystem since 2018, building blockchain-based technology solutions, developing a range of investment strategies, and running node validators. Franklin Templeton Digital Assets’ dedicated digital assets research team leverages fundamental “tokenomic” analysis, insights from an embedded data science team, and deep industry connections to help inform product development and investment decisions. For more information, please visit Franklin Templeton Digital Assets and follow the team on X. The responses and recommendations provided by survey respondents are not recommendations of Franklin Templeton.

Franklin Templeton Digital Assets is a part of Franklin Resources, Inc. [NYSE: BEN], a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.58 trillion in assets under management as of December 31, 2024. For more information, please visit franklintempleton.com and follow us on LinkedIn, X and Facebook.

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SOURCE Digital Assets Council of Financial Professionals

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