The global financial market has encountered a huge shock, with 480,000 people getting liquidated in the crypto assets market.

Recently, the global financial markets have experienced a severe shock. The three major U.S. stock indices have continued to decline, and European and Asian stock markets have also seen significant drops. The commodity markets have been affected as well, with both oil and gold prices falling. The crypto assets market has also not been spared, with Bitcoin dropping over 10% in two days and Ethereum plummeting by 20%. The entire financial market presents a "green and bleak" scene.

The main reason for this market turmoil is the recent executive order signed by the U.S. President regarding "reciprocal tariffs." This executive order announces a "minimum baseline tariff" of 10% on trade partners and imposes higher tariffs on certain trade partners. This move has triggered concerns about a global trade war.

In response, China quickly took countermeasures. The State Council Tariff Commission, the Ministry of Commerce, and the General Administration of Customs have consecutively issued several countermeasures against the U.S., announcing an increase of 34% tariffs on imported goods originating from the United States.

In this situation, global financial markets have experienced an unprecedented crash. US stock futures continued the sharp decline from last week, with Nasdaq futures dropping over 5% and S&P 500 futures falling more than 4%. European stock index futures also plummeted, with the European STOXX 50 index futures down over 4% and DAX index futures close to a 5% drop. The Asian markets were not spared either, with the Japanese and South Korean stock markets collapsing again; the KOSPI opened down more than 4%, and the Nikkei 225 index fell nearly 2%. The Hong Kong Hang Seng Index recorded its largest single-day drop since October 28, 1997.

The crypto assets market has also suffered a severe blow. Bitcoin's two-day decline exceeded 10%, briefly falling below $75,000. Other crypto assets experienced even larger declines, with Ethereum dropping below $1,500 and SOL reaching a low of $100. According to data platform statistics, on that day, a total of 487,700 people got liquidated globally, with a liquidation amount exceeding $1.632 billion.

In the face of such a severe market situation, global investor confidence has plummeted to freezing point, and panic sentiment has sharply risen. Many experts and political figures have begun to warn that the United States may fall into a recession. The Prime Minister of Canada stated that the U.S. is entering a recession due to the president's aggressive tariff actions. The CEO of a major asset management firm also expressed agreement with this view. According to a survey, 69% of business leaders expect an economic recession in the U.S., with more than half believing that the recession will occur this year.

Despite the intense market reaction, the U.S. government seems to be sticking to its tariff policy. It has been reported that over 50 economies are in contact with the U.S. regarding the tariff policy, but the U.S. president stated "there will be no pause on tariffs."

Analysis suggests that the reciprocal tariff policy has three main objectives: to reverse trade imbalances and deficits, to increase fiscal revenue, and to serve as a means of diplomacy and negotiation. However, it currently appears that this policy has resulted in devastating impacts, with a global trade war intensifying.

For the market, the biggest concern is the impact of this policy on the U.S. economic recession. Research institutions generally predict that the new tariff policy will raise the price level in the U.S. by 1-2.5%. At the same time, several institutions forecast that the new tariff policy will have a negative impact on U.S. GDP growth. JPMorgan has raised its expectation of a U.S. recession in 2025 from 40% to 60%.

In the face of severe market volatility, multiple countries have begun to take measures to stabilize the market. China's national team has entered the market to increase holdings in ETFs, and Japan and South Korea have also implemented various measures. These actions have stabilized market sentiment to some extent.

There is a significant divergence of opinions in the market regarding the future trend. Some analysts believe there is still room for further selling, while others think the market may experience a rebound. Technical analysis leans towards pessimism, suggesting that the price of Bitcoin may further decline to $66,000 - $72,000.

Currently, the market is closely watching the internal policy direction of the United States and the attitude of the Federal Reserve. The Federal Reserve will release the minutes of the March monetary policy meeting this Thursday, which may provide more clues for the market. Before this, market volatility may continue, and investors need to remain vigilant.