Crypto Bleeds as Trump's Tariffs Ignite Global Trade Tensions

Crypto Bleeds as Trump's Tariffs Ignite Global Trade Tensions

Bitcoin fell for three consecutive days, trading below $100,000, following escalating trade tensions after President Trump’s new tariffs. His executive order imposes 25% tariffs on imports from Canada and Mexico, along with a 10% tariff on Canadian energy and Chinese goods (starting Tuesday).

Canada and Mexico swiftly announced retaliatory measures, with Prime Minister Justin Trudeau confirming 25% tariffs on a wide range of US goods and Mexico’s President Claudia Sheinbaum implementing both tariff and non-tariff responses.

Investors fear the renewed trade war, coupled with mass deportations in the US, could stoke inflation and delay potential Federal Reserve rate cuts, contributing to Bitcoin’s price weakness. The broader crypto market mirrored this decline, with PENGU, VIRTUAL, and BONK dropping between 30% and 50%.

Analysts also highlight the potential impact on Bitcoin mining costs, as Canada considers export tariffs on energy, a key factor for US miners controlling 36% of the global hashrate. The heightened uncertainty has turned Bitcoin into a barometer of macro anxiety, offering risk-off cues to traditional markets.

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Uniswap V4 Goes Live Across 12 Blockchains

Uniswap V4 has gone live on 12 blockchains, including Ethereum, Arbitrum, and BNB Chain, introducing awaited upgrades like “hooks” that let developers customize fees and swaps. This version slashes liquidity pool costs by 99.99% and features a “singleton” architecture, where pool state and operations are handled by a single smart contract, resulting in major gas savings.

Over 150 custom hooks have been built by developers through Uniswap grants, enabling dynamic features like auto-rebalancing and MEV protection. Despite losing volume dominance to Solana’s Raydium, Uniswap aims to reclaim its lead with V4’s flexibility and improved efficiency. Liquidity provisioning is live now, with token swaps rolling out in the coming days.

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Pump.fun Faces Class Action Over Memecoin Losses

Pump.fun is facing a proposed class action lawsuit in New York, alleging it facilitated the sale of unregistered securities through its memecoin platform, raking in nearly $500 million in fees. Plaintiff Diego Aguilar claims losses from coins like FRED, FWOG, and GRIFFAIN, accusing the platform of enabling “pump-and-dump” schemes and targeting inexperienced investors via social media.

This is the third lawsuit against Pump.fun, with prior cases linked to tokens PNUT and HAWK, all spearheaded by law firm Wolf Popper LLP. Despite legal troubles, Pump.fun continues to thrive, earning over $116 million in January alone, raising questions about regulatory oversight. The company has not publicly responded to the latest allegations.

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Dogwifhat Sphere Deal Denied Amid Fund Controversy

The Las Vegas Sphere has denied any advertising deal with Dogwifhat (WIF), contradicting claims made by its backers after raising $700,000. “There was and is no plan for Dogwifhat to appear on the Exosphere,” a spokesperson said, calling out the team for misleading promotion. This comes after the project’s official X account teased an announcement, sparking a 34% surge in WIF’s price.

On-chain data shows nearly $700,000 moved from the WIF Sphere wallet to an unknown address, raising suspicions amid community demands for refunds. The WIF team insists negotiations are ongoing with an “established brand,” promising to return funds if the deal collapses. The Sphere, however, maintains it only accepts crypto ads from major exchanges or Bitcoin-related projects.

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Data of the Day

Sky Protocol’s stablecoin, USDS, has skyrocketed from 98.5 million to 2.32 billion in supply since September 2024, marking a 135% growth following MakerDAO’s rebrand. Meanwhile, DAI’s supply plummeted 31.5% as the protocol shifted focus to USDS, emphasizing stronger collateral backing and improved peg stability.

The rebrand to Sky Protocol aimed to shed Maker’s “early DeFi” image, appealing to broader crypto audiences and traditional finance players. Upgrades included new governance tools and refined issuance mechanisms, enhancing community engagement. USDS’s quick adoption signals a successful transition, positioning it as Sky’s flagship stablecoin.

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More Breaking News

• Tether launches its $140 billion USDT stablecoin on Bitcoin and Lightning Networks, aiming to boost BTC financial activity via Lightning's Taproot Assets protocol.
• India imposes a 70% tax penalty on undisclosed crypto gains under new regulations in the Income Tax Act, applicable from February 2025.
• Sam Bankman-Fried's parents are reportedly seeking a pardon from President Trump for their son, who is serving 25 years for financial fraud related to FTX.
• Elon Musk’s father promotes the ‘Musk It’ Solana meme coin, aiming to raise $200 million for a think tank without his son’s involvement.
• A UK crypto gang was sentenced to over 76 years in prison for kidnapping, torturing, and extorting $124,000 in cryptocurrency from a victim.
• MicroStrategy plans to raise $584 million through new stock sales to expand its $48 billion Bitcoin treasury, according to chairman Michael Saylor.
• Kraken reports $1.5 billion in revenue for 2024, while Tether posts $13 billion in net profits, with record exposure to US Treasurys at $113 billion.
• 21Shares files with the SEC to launch a spot Polkadot ETF, intending to list it on the Cboe BZX exchange with Coinbase as the custodian.
• LayerZero settles with the FTX estate over a $150 million Alameda deal, resolving a legal dispute stemming from transactions made before FTX's collapse.

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