The world of cryptocurrency has always been dynamic, but recent events have added even more volatility. The trade war initiated by Donald Trump has become a catalyst for global economic changes that directly affected the crypto market.
What’s Happening?
The trade war between the US and other countries began with the introduction of extensive import tariffs. Trump announced tariffs ranging from 10% to 50%, depending on the country of origin:
- China: Tariffs on goods have reached 104%, delivering a significant blow to Chinese exports.
- European Union: Tariffs of 20% were imposed on a wide range of goods.
- Vietnam: Tariffs hit 46%, including coffee and other key products.
- Japan and South Korea: Import tariffs are set at 24% and 25%, respectively.
- Thailand and Indonesia: Tariffs have risen to 36% and 32%.
Recently, Donald Trump announced a 90-day pause on new tariffs to allow countries to discuss trade agreements. However, tariffs for China were not only maintained but increased further from 104% to 125%.
Why Are Cryptocurrencies Reacting?
- Increased Demand for Alternative Assets: When traditional markets falter, cryptocurrencies are perceived as a “safe haven.”
- Regulatory Pressure: US policies on cryptocurrencies are becoming stricter, raising concerns among investors.
- The China Factor: China is actively developing its digital currency, increasing global competition.
What Does This Mean for Traders?
- Volatility: The market is becoming less predictable, creating opportunities for experienced traders but posing risks for beginners.
- Long-Term Potential: Despite the current swings, cryptocurrencies continue to strengthen their position as part of the global economy.
Conclusion
Trump’s trade war poses challenges for the crypto market but also opens up opportunities. Those who adapt to the changes can benefit from the current situation.
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