New Tariff Data Shows Why the Crypto Market Has Been Stuck for Months

Group 1 - The core argument of the research is that US tariffs are primarily impacting domestic consumers and importers, absorbing 96% of the costs, while foreign exporters only bear 4% [1][3] - Nearly $200 billion in tariff revenue has been generated, predominantly affecting the US economy [2] - Tariffs are functioning similarly to a domestic consumption tax, with US importers paying tariffs at the border and either absorbing or passing on the costs, leading to lower trade volumes rather than cheaper imports [3][4] Group 2 - Economists describe the impact of tariffs as a slow-moving consumption tax, where costs gradually seep into supply chains over time rather than causing immediate price jumps [4] - Although US inflation remained moderate through 2025, studies indicate that only about 20% of tariff costs reached consumer prices within six months, with the remainder affecting importers and retailers, thereby squeezing their margins [5][6] - This delayed pass-through of costs contributes to a gradual erosion of purchasing power, which accumulates pressure without immediate inflation spikes [6] Group 3 - The stagnation in crypto markets is linked to the availability of discretionary liquidity, which is influenced by consumer and business confidence in deploying excess capital [7]