A Hidden Strain on Crypto Market Liquidity

The Kiel Institute’s study reveals that U.S. tariffs from January 2024 to November 2025 primarily impact American consumers and importers, potentially influencing broader economic conditions..

This cost absorption by domestic stakeholders reduces liquidity, affecting the cryptocurrency market by contributing to its stagnation without direct responses from key industry players or regulatory bodies.

U.S. Importers Bear 96% of Tariff Costs, $200 Billion in Revenue

In the 2018–19 U.S.-China trade conflict, tariffs similarly saw near-complete cost pass-through to U.S. entities, yet few direct connections to cryptocurrency markets were made then, too.

The ongoing tariff scenario reflects past trade tensions, where costs predominantly hit U.S. buyers. This parallels with lowered disposable income affecting both consumer confidence and asset speculation, including in cryptocurrency markets. As liquidity remains stable but stagnant, potential shifts in consumer spending behavior and market investment trends may emerge.

Given this scenario, experts highlight cautious financial strategies and predict careful allocation of funds in volatile markets. The lack of primary responses from government portals or cryptocurrency platforms suggests this is an unfolding area needing more extensive investigation.