The crypto market is on high alert ahead of April 2, a date some analysts are calling \u201cthe biggest event of the year by an order of magnitude.\u201d Macro economist Alex Kr\u00fcger (@krugermacro), warns that President Donald Trump\u2019s upcoming announcement of new reciprocal tariffs could deliver a seismic jolt to global markets \u2014 including crypto.<\/p>\n
In a post<\/a> shared on X, Kr\u00fcger describes the looming announcement, which the president has dubbed \u201cLiberation Day,\u201d as \u201c10x more important than any FOMC<\/a>\u201d meeting: \u201cApril 2nd is similar to election night. It is the biggest event of the year by an order of magnitude. 10x more important than any FOMC, which is a lot. And anything can happen.\u201d<\/p>\n According to Kr\u00fcger, Trump might choose one of several paths: \u201cTrump could go soft, in which case markets would rally fast and furiously. Or could go half-way, adding uncertainty on timelines, in which case markets would take out the stops of all longs and shorts. Or go all out, in which case markets could easily crash another 10% to 15%, fast.\u201c<\/p>\n Kr\u00fcger also suggests that \u201cthe US economy is still strong, but will highly likely slow down due to tariffs regardless of the path Trump chooses.\u201d Nevertheless, he notes that many economists have already factored in a sharp year-end slowdown. He stresses that April 2 could mark the peak of market anxiety, aligning with the arrival of US Tax Day just two weeks later. \u201cEither way, you all want to be prepared and ready to act on \u2018Liberation Day.\u2019 It will be big.\u201d<\/p>\n Trump\u2019s \u201cLiberation Day\u201d announcement will reportedly focus on \u201creciprocal tariffs\u201d targeting specific countries or blocs deemed to maintain unfair trade barriers. Although this strategy appears \u201cmore targeted than the barrage he has occasionally threatened,\u201d officials familiar with the matter believe it could still prove far-reaching.<\/p>\n