Cryptocurrency traders are more and more shifting capital into stablecoins and tokenized real-world belongings (RWAs) in a bid to keep away from volatility forward of US President Donald Trump’s broadly anticipated tariff announcement on April 2.

Increasingly extra capital is flowing into stablecoins and the real-world asset (RWA) tokenization sector, which refers to monetary merchandise and tangible belongings comparable to actual property and high-quality artwork minted on the blockchain.

“Stablecoins and RWAs continue to see steady inflows of capital as safe havens in the current uncertain market,” crypto intelligence platform IntoTheBlock wrote in a March 31 X post.

“However, because these assets reside on-chain, even slight shifts in sentiment can trigger significant price movements, driven by the lower barriers to reallocating capital in real time,” the agency famous.

The flight to security is principally attributed to geopolitical tensions and world commerce issues, based on Juan Pellicer, senior analysis analyst at IntoTheBlock:

“Many investors were expecting economic tailwinds following Trump’s inauguration as president, but increased geopolitical tensions, tariffs and general political uncertainty are making investors more cautious.”

“This is not unreasonable, as even though global growth forecasts remain positive, growth expectations have decreased globally in recent months,” he added.

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The prospect of a worldwide commerce warfare has heightened inflation-related issues, inflicting a major decline in each cryptocurrency and conventional fairness markets.

Bitcoin (BTC) has fallen 19% and the S&P 500 (SPX) index has fallen over 7% within the two months since Trump introduced import tariffs on Chinese items on Jan. 20, the day of his inauguration as president.

The April 2 announcement is anticipated to element reciprocal commerce tariffs focusing on prime US buying and selling companions. The measures goal to scale back the nation’s estimated $1.2 trillion items commerce deficit and enhance home manufacturing.

Related: Stablecoin rules needed in US before crypto tax reform, experts say

Investor sentiment pressured by April 2 Trump tariff announcement

Global tariff fears and uncertainty across the upcoming announcement proceed to pressure investor sentiment in world markets.

“Risk appetite remains muted amid tariff threats from President Trump and ongoing macro uncertainty,” Iliya Kalchev, dispatch analyst at digital asset funding platform Nexo, advised Cointelegraph.

Meanwhile, RWAs reached a new cumulative all-time excessive of over $17 billion on Feb. 3, and are presently lower than 0.5% away from surpassing the $20 billion milestone, based on data from RWA.xyz.

Some business watchers mentioned that Bitcoin’s lack of upside momentum could drive RWAs to a $50 billion all-time high earlier than the top of 2025, as their elevated liquidity will assist RWAs entice a major share of the $450 trillion world asset market.

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