Bitcoin fluctuates as Trump's tariffs influence market volatility in South Korea

From April 7 to 11, the virtual asset market experienced extreme volatility as the risk-averse sentiment spread due to the 'full-scale tariff war' between the United States and China. Experts predict that risk assets can only recover if a reality of interest rate cuts and flexibility in tariff policies materializes.

As of 5 p.m. on the 11th, Bitcoin was trading at $81,338, down 0.49% from 24 hours earlier. After plummeting to $74,000 on the 4th, it recovered to $80,000 in just one day, but the next day it dropped again to $75,000. However, following U.S. President Donald Trump's announcement of a tariff delay, it rose back to $83,000.

At a similar time, Ethereum dropped 14.57% from a week earlier, trading at $1,554. XRP saw a peak fluctuation of 15% reaching $2. BNB and Solana fell by 1.2% to 2.7% from a week ago.

◇ Virtual assets experienced less volatility than the U.S. stock market

The key factor that shook the virtual asset market last week was President Trump's tariff increase on China. As the cumulative tariff rate expanded to 145%, China immediately responded with a retaliatory tariff of 84%. During this process, the Standard & Poor's 500 index fell 18.9% from its peak at one point. A leveraged exchange-traded fund (ETF) incurred a loss of $25.7 billion in just two days.

While the S&P 500 index showed volatility close to 10% in a day, Bitcoin's volatility was relatively low. Among the top 50 asset classes by market capitalization, only a few tokens such as HYPE and OKB showed an upward trend, indicating a differentiated flow.

The market is gradually increasing expectations for a transition to a more accommodative currency policy. The consumer price index (CPI) for March in the U.S. fell below market expectations, indicating that the likelihood of inflation remains low. As a result, the possibility of a first interest rate cut in June rose to 62.6%.

Choi Seung-ho, a researcher at Jangle, noted, "The market has been facing high uncertainty, repeatedly rising and falling based on a comment from President Trump," but added, "If the perception that increased tariffs are a means to enhance political negotiation power spreads, it could alleviate caution against extreme scenarios." He stated, "If interest rate cuts and other measures materialize in the future, it could serve as a turning point for the recovery of risk assets."

◇ Large financial and tech corporations in Japan accelerate the commercialization of stablecoins

Sumitomo Mitsui Financial Group (SMFG) plans to issue its own stablecoin next fiscal year by forming a consortium with Avalabs and Fireblocks. It also has future plans to utilize it as a payment method for real-world assets (RWA).

Sony Electronics Singapore has introduced 'Crypto.com Pay' to support USDC payments in its online store. This marks the first occurrence of digital asset payment in the electronics sector. The virtual asset industry interprets that movements in the financial sector are now extending into real consumption areas.

Through the revised Payment Services Act implemented in June 2023, Japan defines stablecoins as electronic payment methods and restricts issuers to banks, trust companies, and money transfer businesses. Consequently, major banks like Sumitomo Mitsui and Mizuho are initiating projects. This is seen as part of the Japanese government's 'web3 policy package' to promote the 'Asian digital asset hub.'

As more Japanese companies quickly build concrete utilization models applicable to the real economy, the competition for dominance over stablecoins in the Asian region is expected to intensify. To respond, South Korea must take the initiative in legislative organization, expanding corporate participation, and fostering social consensus on the necessity of stablecoins.

◇ Bitcoin holders now have a path to profit

Individuals holding Bitcoin can now generate revenue through staking. The digital asset project 'Babylon' recently launched its own blockchain, the 'Babylon Genesis Chain,' and plans to provide token rewards to Bitcoin holders participating in staking. Approximately 49,540 Bitcoins (about 5 trillion won) are staked in the Babylon protocol, occupying more than 80% of the total value locked (TVL) in the Bitcoin DeFi ecosystem.

Babylon will utilize staked Bitcoin to enhance the security of various blockchain networks and distribute the ' $ BABY ' token issued as a reward to depositors. In a recent airdrop, 15% of the total supply of $BABY was distributed as rewards to early participants, marking the first instance of realizing the profitability of Bitcoin staking.

☞ CrossAngle is

providing essential operational solutions and trust-based community building services targeting companies and foundations adopting Web3. It operates the crypto data intelligence platform Jangle, and the Jangle research team is creating content to showcase trends in the virtual asset investment industry based on global virtual asset information and data.