Altcoin liquidity’s dropped since President Trump’s tariff announcement: Kaiko Research

This is a segment from the Empire newsletter. To read full editions, subscribe .

So much for any hope around an altcoin resurgence. 

Unfortunately, as folks have taken risk off the table in the wake of the tariffs, they’ve also moved further away from altcoins. 

Source: Binance  

Since the announcement, liquidity “for the top ten altcoins and ETH decreased by 12% and 8%, respectively, indicating a more cautious stance,” Kaiko Research noted. 

All of this shows that capital is being sidelined right now as folks figure out how to approach this precarious market — a market that may be heading toward a cliff of sorts after China responded to President Donald Trump’s threat about new, additional 50% tariffs against the country. China has promised to fight the US on the tariff front, which could set us up for more market tension, given that China was handed a Tuesday deadline (that’s today!) to scrap its retaliatory tariffs.

Looking at the correlation of bitcoin, the S&P 500, and gold

While CT initially hoped that crypto would be protected from tariffs, that doesn’t seem to be the case, and the correlation is definitely back. However, while equities continue to grapple with the potential impacts of a trade war, folks over in crypto don’t have to deal with the same level of panic. 

I have a feeling we’re just going to continue assessing market conditions this week, but it hasn’t seemed to change the rather bullish stance folks in crypto have adopted despite the doomposting over on CT.

Get the news in your inbox. Explore Blockworks newsletters:

• Blockworks Daily : The newsletter that helps thousands of investors understand crypto and the markets, by Byron Gilliam.
• Empire : Start your morning with the top news and analysis to inform your day in crypto.
• Forward Guidance : Reporting and analysis on the growing intersection of crypto and macroeconomics, policy and finance.
• 0xResearch : Alpha directly in your inbox. Market highlights, data, degen trade ideas, governance updates, token performance and more.
• Lightspeed : Built for Solana investors, developers and community members. The latest from one of crypto’s hottest networks.
• The Drop : For crypto collectors and traders, covering apps, games, memes and more.
• Supply Shock : Tracking Bitcoin’s rise from internet plaything worth less than a penny to global phenomenon disrupting money as we know it.