{"id":886496,"date":"2026-01-20T19:12:20","date_gmt":"2026-01-21T01:12:20","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/20\/new-tariff-data-shows-why-the-crypto-market-has-been-stuck-for-months\/"},"modified":"2026-01-20T19:12:20","modified_gmt":"2026-01-21T01:12:20","slug":"new-tariff-data-shows-why-the-crypto-market-has-been-stuck-for-months","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2026\/01\/20\/new-tariff-data-shows-why-the-crypto-market-has-been-stuck-for-months\/","title":{"rendered":"New Tariff Data Shows Why the Crypto Market Has Been Stuck for Months"},"content":{"rendered":"<div>\n<ul>\n<li>New research shows 96% of U.S. tariff costs were paid domestically, acting as a slow, hidden tax on consumers and businesses.<\/li>\n<li>That quiet cost drain reduced discretionary liquidity, helping explain why crypto markets stalled after October instead of rebounding.<\/li>\n<li>With tariff pressure no longer intensifying, crypto has begun to regain momentum as other headwinds ease.<\/li>\n<\/ul>\n<\/div>\n<div>\n<p><strong>New research cited by The Wall Street Journal suggests US tariffs are quietly weighing on the domestic economy. That drag may help explain why crypto markets have struggled to gain momentum since the October sell-off.<\/strong><\/p>\n<p>A study by Germany\u2019s Kiel Institute for the World Economy found that for tariffs imposed between January 2024 and November 2025, 96% of the costs were absorbed by US consumers and importers, while foreign exporters bore just 4%.\u00a0<\/p>\n<p>Nearly $200 billion in tariff revenue was paid almost entirely inside the US economy.<\/p>\n<p><small>Sponsored<\/small><\/p>\n<figure>\n<div>\n<blockquote data-width=\"500\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>By analyzing $4 trillion of shipments between January 2024 and November 2025, researchers found that foreign exporters absorbed only about 4% of the burden of last year\u2019s U.S. tariff increases by lowering their prices, while American consumers and importers absorbed 96%.<\/p>\n<p>The\u2026<\/p>\n<\/div>\n<p>\u2014 Nick Timiraos (@NickTimiraos) <a href=\"https:\/\/twitter.com\/NickTimiraos\/status\/2013295932742242377?ref_src=twsrc%5Etfw\">January 19, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<h2 id=\"h-tariffs-are-acting-like-a-domestic-consumption-tax\"><strong>Tariffs are Acting Like a Domestic Consumption Tax<\/strong><\/h2>\n<p>The research challenges a core political claim that tariffs are paid by foreign producers. In practice, <a href=\"https:\/\/beincrypto.com\/gold-record-bitcoin-plunge-trump-eu-tariffs\/\" target=\"_blank\" rel=\"noreferrer noopener\">US importers pay tariffs<\/a> at the border, then absorb or pass on the costs.<\/p>\n<p>Foreign exporters largely kept prices steady. Instead, they shipped fewer goods or redirected supply to other markets. The result was lower trade volumes, not cheaper imports.<\/p>\n<p>Economists describe this effect as a <strong>slow-moving consumption tax<\/strong>. Prices do not jump immediately. Costs seep into supply chains over time.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/assets.beincrypto.com\/img\/ehqzkiLA8Nr3D_JDT5-D-YrpStM=\/smart\/3fcb5409b4cb45edb30b6e8a97ed3e11\" alt><figcaption>US President Trump Imposes New Tariffs on Several European Countries For Opposing His Greenland Purchase Offer. Source: Truth Social<\/figcaption><\/figure>\n<p><small>Sponsored<\/small><\/p>\n<h2 id=\"h-us-inflation-stayed-moderate-but-pressure-built\"><strong>US Inflation Stayed Moderate, but Pressure Built<\/strong><\/h2>\n<p><a href=\"https:\/\/beincrypto.com\/us-cpi-report-fed-inflation-impact-eur-usd\/\" target=\"_blank\" rel=\"noreferrer noopener\">US inflation<\/a> remained relatively contained through 2025. That led some to conclude <a href=\"https:\/\/beincrypto.com\/bitcoin-2026-trump-tariff-risks\/\" target=\"_blank\" rel=\"noreferrer noopener\">tariffs had little impact<\/a>.<\/p>\n<p>However, studies cited by the WSJ show only about <strong>20% of tariff costs reached consumer prices within six months<\/strong>. The rest sat with importers and retailers, squeezing margins.<\/p>\n<p>This delayed pass-through explains why inflation stayed moderate while purchasing power eroded quietly. The pressure accumulated rather than exploded.<\/p>\n<figure>\n<div>\n<blockquote data-width=\"500\" data-dnt=\"true\">\n<div lang=\"en\" dir=\"ltr\">\n<p>Today, the US CPI inflation is 1.57% (YoY).<\/p>\n<p>It&#8217;s been holding below the 2% target since the end of the year.<\/p>\n<p>To calculate an independent gauge of US inflation, we aggregate millions of price points daily, whereas the official US inflation is reported by the US Bureau of Labor\u2026 <a href=\"https:\/\/t.co\/ysDd9Obt68\">pic.twitter.com\/ysDd9Obt68<\/a><\/p>\n<\/div>\n<p>\u2014 Truflation (@truflation) <a href=\"https:\/\/twitter.com\/truflation\/status\/2013249745112965326?ref_src=twsrc%5Etfw\">January 19, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p><small>Sponsored<\/small><\/p>\n<h2 id=\"h-how-this-links-to-crypto-market-stagnation\"><strong>How This Links to Crypto Market Stagnation<\/strong><\/h2>\n<p>Crypto markets depend on <strong>discretionary liquidity<\/strong>. They rise when households and businesses feel confident deploying excess capital.<\/p>\n<p>Tariffs drained that excess slowly. Consumers paid more. Businesses absorbed costs. Cash became less available for speculative assets.<\/p>\n<p>This helps explain why crypto did not collapse after October, but also failed to trend higher. The market entered a <a href=\"https:\/\/beincrypto.com\/bitcoin-bear-market-indicators-2026\/\"><strong>liquidity p<\/strong><\/a><strong><a href=\"https:\/\/beincrypto.com\/bitcoin-bear-market-indicators-2026\/\" target=\"_blank\" rel=\"noreferrer noopener\">l<\/a><\/strong><a href=\"https:\/\/beincrypto.com\/bitcoin-bear-market-indicators-2026\/\"><strong>ateau<\/strong><\/a>, not a bear market.<\/p>\n<p><small>Sponsored<\/small><\/p>\n<p>The October downturn flushed leverage and stalled ETF inflows. Under normal conditions, easing inflation might have restarted risk appetite.<\/p>\n<p>Instead, tariffs kept financial conditions quietly tight. Inflation stayed above target. The Federal Reserve remained cautious. Liquidity did not expand.<\/p>\n<figure>\n<p>\n<iframe loading=\"lazy\" title=\"Biggest Crypto Liquidation Ever Happened!\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/IVUzdg_ZcK4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/p>\n<\/figure>\n<p>Crypto prices moved sideways as a result. There was no panic, but also no fuel for sustained upside.<\/p>\n<p>Overall, the new tariff data does not explain crypto\u2019s volatility on its own. But it helps explain why the market stayed stuck.\u00a0<\/p>\n<p>Tariffs quietly tightened the system, drained discretionary capital, and delayed the return of risk appetite.<\/p>\n<\/div>\n<div>\n<p>Disclaimer<\/p>\n<div>\n<p>In adherence to the <a href=\"https:\/\/beincrypto.com\/trust-project\/\" target=\"_blank\" rel=\"noopener noreferrer\">Trust Project<\/a> guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our <a href=\"https:\/\/beincrypto.com\/terms-and-conditions\/\" target=\"_blank\" rel=\"noopener noreferrer\">Terms and Conditions<\/a>, <a href=\"https:\/\/beincrypto.com\/privacy-policy\/\" target=\"_blank\" rel=\"noopener noreferrer\">Privacy Policy<\/a>, and <a href=\"https:\/\/beincrypto.com\/disclaimer\/\" target=\"_blank\" rel=\"noopener noreferrer\">Disclaimers<\/a> have been updated.<\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/beincrypto.com\/tariffs-drained-liquidity-crypto-stagnation\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Mohammad Shahid<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New research shows 96% of U.S. tariff costs were paid domestically, acting as a slow, hidden tax on consumers and businesses. That quiet cost drain reduced discretionary liquidity, helping explain why crypto markets stalled after October instead of rebounding. With tariff pressure no longer intensifying, crypto has begun to regain momentum as other headwinds ease.<\/p>\n","protected":false},"author":1,"featured_media":886497,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[94,28366],"tags":[],"class_list":{"0":"post-886496","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-shows","8":"category-tariff"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/886496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=886496"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/886496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/886497"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=886496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=886496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=886496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}