US Treasury Secretary Revives Trade-War Inflation Risk at Davos as Crypto Sinks

Global markets turned risk-off after US Treasury Secretary Scott Bessent reaffirmed the Trump administration's willingness to use tariffs as a primary geopolitical tool during his appearance at the World Economic Forum in Davos. His comments, which framed tariffs as effective leverage—including a potential 10% tariff by February 1 if allies do not cooperate on Greenland—reignited fears of trade-driven inflation. This macro risk caused Bitcoin to drop below $90,000 and Ethereum below $3,000 as investors reduced exposure to volatile assets. Bessent defended tariffs as economically sound and dismissed concerns about domestic inflation impact, though research suggests consumers absorb most of the cost. While Bessent attributed recent bond market volatility to turmoil in Japan, traders focused on the renewed policy uncertainty, leading to a familiar pattern where trade friction pressures crypto markets.

(Source：BeInCrypto)