In the first three months of his presidency, Donald Trump ignited commercial tensions by announcing the customs tariff for Canada, Mexico and China and the result was unexpected unrest in the United States and global markets.
The repercussions of the definitions were relatively fast, and the influence was felt through the encryption market. As of March 8, the US President has retracted some plans to impose a tariff on some Mexican and Canadian goods – another development in the United States' commercial policy that continues to get rid of the markets.
QCP Capital said in Singapore Crypto trading in A. Note. “The encryption markets for this week were not less than the rotating ship. With the total conditions in the flow, the encryption remains closely related to stocks, with the opposite of price procedures in the broader economic transformations.”
Wild fluctuations emphasize the upcoming fluctuations for encrypted currencies-which are seen as high-risk assets-where the Trump administration tests the limits of economic and external policy and works as a warning story because uncertainty is spread in the markets.
In a post on X, former US Treasury Secretary, Lawrence Summer He said That (…) the policy of customs tariffs has already taken $ 2 trillion from the value of the stock market in the United States, “and the summer indicated that these measures were” ill -considered “and that it would undermine the American competitiveness.
“No wonder that Wall Street's fear is a third.”
VIX (Vix) procedure price. Source: Yahoo! finance.
While the customs tariffs and policy advertisements that transport the market from Trump may create a feeling of imminent ventilation, its impact on the future of the encryption sector is still a question. Eugene Epstein, head of commercial and organized products at Moneycorp, says if the trade war weakens the US dollar through inflation, Bitcoin may actually benefit. Investors who escape currencies in which currencies may turn to encryption, and if the countries damaged by customs tariffs decrease their currencies, bitcoin can serve as a means of capital journey.
Unlike traditional markets, Bitcoin trades around the clock throughout the week and immediately interacts with macroeconomic spells, making them very vulnerable to risks. “In terms of feelings, the main engines for encryption will continue in the case of a federal encryption reserve as well as the morale of comprehensive risk. If American stocks continue to decline, it is difficult to imagine a strong encoding market, at least in the short term.”
Many in the encryption community expected Trump's return to the White House to send Bitcoin, and at first, that was – from $ 69,374 on election day to a record number $ 108,786 on the opening day. But since then, BTC fell, as it decreased to less than $ 80,000 by late February and again in March. Prices are poorly come despite the position of pro -Crypto management, including strategic encryption reserves and market structure reforms.
Cumulative flows reached the investment funds circulating in Bitcoin to their highest levels in winning Trump, where investors flow more than $ 10 billion in these tools in the aftermath of the elections. Data By Farside Investors. However, it appears that the increasing concerns about the potential tariff war affected the market morale, and thus, on encrypted currencies.
Since early February, the investment funds circulated in Bitcoin have seen great output flows as uncertainty waving on the broader economic scene. At the same time, the origins of safe haven such as gold responded positively amid the war of tariffs.
Bitcoin ETF flow. Source: Farside Investors.
This is not the first time that President Trump has the threats of customs tariffs as a bargaining chickenpox and some traders believe that the market will adapt to the basics on the essential use of definitions as a way to impose policy changes between US allies.
For this reason, some traders in the industry choose not to build their strategies only on the definitions. For the Pop Waldin, the head of ABRA trading, the definitions are “just the title” that affect the morale of investors in the short term, but they do not change the basic conditions of the market.
“For me, the definitions are the red herring. It is something that Trump uses as a bargaining chip, and I don't think it means anything to encrypt. They initially caused a decrease-Al-Fassah companies caught a long market in the top and excessive search for an exciting step-but that was a link, not the causal relationship.”
Related: 3 reasons that make Bitcoin sell on Trump's definition news
Walin refers to Trump's financial austerity program as the real driver for encryption markets.
This is what everyone sees in the Tradfi space. The definitions are only another piece in the financial austerity trade that occurs across the global markets – this is in fact what affects the encryption much more than that, as financial austerity means less cash there for publication. “
This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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