Trump Creates a "Big News" Event as $1.5 Trillion Erased from U.S. Stocks and $300 Billion Wiped Out in Cryptocurrencies
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Trump Creates a "Big News" Event as $1.5 Trillion Erased from U.S. Stocks and $300 Billion Wiped Out in Cryptocurrencies
Investing in TSMC and easing sanctions on Russia—this is the "big news" Trump had been teasing.
Navigating Web3 tides with focused insightsAuthor: 0xFacai
Last night, the Dow Jones opened up 300 points before rapidly reversing course, plunging 1,100 points within hours. Between 10:00 AM and 3:30 PM Eastern Time, the S&P 500 erased $1.5 trillion in market value. At the same time, the cryptocurrency market lost nearly $300 billion.
After Sunday’s crypto market surge—triggered by Trump’s announcement of establishing a strategic reserve for SOL, XRP, ADA, and other cryptocurrencies—Trump swiftly delivered a “reverse cleanse” to the U.S. stock market. The crypto market couldn’t escape the downturn either. Once again, the entire capital market was violently shaken by the President.
Investing in TSMC, Easing Russia Sanctions
Yesterday evening, the S&P 500 opened up approximately 30 points, continuing Friday’s momentum. However, shortly afterward, the Trump administration released an "investment statement," triggering immediate market sell-offs.
Trump announced that TSMC will invest $100 billion in the United States, including:
1. Building five factories in Arizona;
2. Creating thousands of jobs;
3. Raising TSMC’s total U.S. investment to $165 billion;
4. Generating "hundreds of billions in economic activity."
Trump claimed this investment plan advances America’s long-term goal of revitalizing its semiconductor industry. For financial markets, however, it intensifies concerns over cross-strait tensions already weighing heavily on investors.
Meanwhile, as President Trump made his announcement, The Wall Street Journal published a timely report stating the Trump administration has officially halted funding for new weapons sales to Ukraine. Subsequently, Reuters reported the U.S. is drafting plans to ease sanctions on Russia.
Prior to this, the Ukraine crisis had stalled amid a live televised clash between two presidents. Now, policies easing pressure on Russia are seen as favoring Moscow, undermining prospects for peace negotiations.
Wildcard Tariffs
Immediately after announcing the investment plan, Trump moved to the Q&A session, further spooking the market and accelerating sell-offs.
First, Trump confirmed he will impose a 25% tariff on Canada and Mexico starting March 4. When asked whether there was still room for Canada and Mexico to reach a deal before midnight, Trump stated there would be no negotiations—tariffs were final.
He then announced new tariffs on imported agricultural products effective April 2. Worse, he declared tariffs would target countries using "currency devaluation" tactics. Minutes later, the White House issued a statement confirming Trump had signed an executive order raising tariffs on China to 20%.
This means U.S.-China tariffs increased by 20 percentage points within just two months—compared to the two years it took during Trump’s first term to reach similar levels. Under this aggressive tariff assault, the U.S. stock market instantly erased $1.5 trillion in value...
Strategic Reserve Unlikely to Materialize
During this press event, Trump did not mention the previously discussed cryptocurrency strategic reserve—not a single word. This silence has raised doubts about his sincerity and the administration’s actual capacity.
Arthur Hayes, founder of BitMEX, recently tweeted that the core problem with governments stockpiling assets is that they trade primarily for political, not financial, gain. Meanwhile, those building truly decentralized technologies and applications lack sufficient financial power to play the political game at critical moments.
Yesterday, Arthur further commented that the government simply doesn’t have the funds to purchase the crypto assets needed for such a reserve: "There's nothing new here—just talk. We'll believe it when the crypto working group gets congressional approval to borrow money or revalue gold." Arthur believes unless Trump pushes through a national Bitcoin reserve, markets will head in an even worse direction.
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