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According to the latest research from the Kiel Institute for the World Economy in Germany, between January 2024 and November 2025, 96% of the costs of tariffs imposed by the United States ultimately fall on American consumers and importers. This figure is quite alarming—the purchasing power on the consumption side is severely squeezed, and disposable liquidity has shrunk significantly. When household and corporate cash flows are eaten up by tariff costs, the funding environment naturally tightens. For the crypto market, this macro liquidity pressure is most directly reflected in shrinking market trading volumes and decreased capital activity. Against the backdrop of slowing economic growth and suppressed consumer willingness, it will be difficult for the crypto market to find new incremental funds in the short term.
When liquidity tightens, the crypto circle immediately loses interest. This wave is indeed a bit risky.
Consumer spending power has been locked up. Who still has spare money to play with crypto?
It's Americans' own doing; no one to blame.
With tariffs increased, retail investors' bullets are gone, and declining trading volume is inevitable.
To put it simply, there's no money left, so what incremental funds are we talking about...
This move is truly brilliant; the American people don't even realize they've been weeded out.
It seems we have to wait for a consumption recovery before new buying interest emerges. Short-term frustration.