During the first three months of his presidency, Donald Trump noted trading tensions by announcing tariffs in Canada, Mexico, and China and the result was unexpected chaos in the US and global markets.
Falling from tariffs was relatively fast, and the effect was felt throughout the crypto market. On March 8, the US president turned away with some plans to impose tariffs on certain Mexican and Canada goods – another twist to the US trade policy rollercoaster that continues to tremble the markets.
Singapore Crypto Trading Firm said QCP Capital in a Remember. “This week’s crypto markets are not short of a roller coaster. In macro’s macro conditions, crypto remains strictly linked to equality, with price action reflecting greater economic changes.”
Wild swings emphasize volatility ahead for cryptocurrencies-which are often seen as high risk properties-while Trump management examines economic and foreign policy limits and serves as a precautionary story as uncertainty lies in the markets.
In an X post, former US Treasury Secretary Lawrence Summers Says That (…) the tariff policy gained $ 2 trillion from the US stock market value, “and Summers suggested that these steps were” indescribable “and that they would ruin the competition with us.
“It’s not surprising that the Wall Street’s fear gauge is at a third.”
Volatility Index (VIX) Action price. Source: Yahoo! Finance.
While Trump’s market and market policy announcements can create a sense of upcoming disaster, its impact on the future of the crypto sector remains in question. If a trade war weakens the US dollar through inflation, Bitcoin can benefit, says Eugene Epstein, head of trading and structured products in moneycorp. Investors who escape the removal of fiat currencies may turn to crypto, and if countries hit countries lowering their currencies in response, Bitcoin can serve as a vehicle as a vehicle for capital flight.
Unlike traditional markets, Bitcoin is trading 24/7 and immediately retaliates with macroeconomic shifts, making it very vulnerable to regional sentiment. “Sentiment -wise, the major crypto drivers will continue the status of a federal crypto reserves as well as the general region at risk. If US equality is constantly falling, it is difficult to imagine a strong crypto market, at least in the near term,” Epstein said.
Many in the crypto community expect Trump’s return to the White House to Send an increase of bitcoin. But since then, the BTC has fallen, dropping below $ 80,000 in late February and again in March. The weakness of the price came across the administration’s pro-crypto bearing, including plans for a strategic crypto reserves and market structural reforms.
Cumulative flows in Bitcoin spot ETF reached record highs following Trump’s success, with investors pouring more than $ 10 billion on these instruments after the election, according to Data by investors. However, growing concerns in a potential tariff war seem to have gained a toll on sentiment in the market and, by expanding, in cryptocurrencies.
Since early February, Bitcoin ETFs have seen significant flows as uncertainty has been sinking in the broader economic views. At the same time, safe assets of shelter such as gold, are really Respond positively In the midst of the tariff war.
Spot bitcoin etf flow. Source: Farside Investor.
This is not the first time President Trump has used tariff threats as a bargaining chip and some merchants believe the market will arrange to focus on foundations for exploding tariffs as a way to force policy changes to US allies.
That is why some industry entrepreneurs have chosen not to base their techniques only on tariffs. For Bob Walden, head of trading in Abra, tariffs are “just a headline” that influences the investor’s short -term sentiment but does not change the basic market conditions.
“To me, the tariffs are a red herring. It’s something Trump uses as a bargaining chip, and I don’t think they mean crypto. They first caused a drawdown-the tariffs were caught by a market that was long at the top and overwhelming seizure looking for an exciting move-but that was a relationship.”
Related: 3 Reasons why Bitcoin sells Trump Tariff News
Walden points to Trump’s fiscal austerity program as a real driver of crypto markets.
“That’s what everyone looks at in the tradfi space. Tariffs are another piece in the fiscal trading of austerity that occurs throughout the global market – that’s really what influences the crypto, because fiscal austerity means less cash out there to deploy.”
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
