The US trade war initiated by the U.S under President Trump has caused notable volatility in the cryptocurrency market. Bitcoin's price dropped to $91
The US trade war, initiated by the Trump administration, has had a significant impact on the cryptocurrency market. Bitcoin’s price dropped to $91,200 following the announcement of new tariffs, but quickly rebounded. Despite short-term turbulence, analysts predict that the ongoing tariff dispute could drive long-term adoption of digital assets as a hedge against rising inflation.
The US administration recently imposed tariffs on imports from key trading partners, including 25% on goods from Canada and Mexico, and 10% on Chinese products. These moves sparked concerns of inflation, which impacted the crypto markets. Initially, Bitcoin suffered a sharp decline, but the market showed resilience as the price climbed back to $102,000.
The tariffs aim to curb illegal immigration and enhance border security, but some analysts believe the move is part of a broader strategy to assert US economic dominance. These tariff actions, especially the additional 25% tariffs on iron and aluminium, suggest that the trade war is far from over, keeping global markets on edge.
Crypto markets reacted swiftly to the news, with Bitcoin reaching a low of $91,200. However, the asset quickly bounced back with over 10% gain in a single day and stabilized at around $97,000.
Similarly, altcoins experienced fluctuations as investors tried to adjust to the new trade environment. Many crypto assets have shown resilience and ability to recover from shocks despite the market uncertainty.
Recent Consumer Price Index (CPI) data has already shown signs of inflation, with a 0.5% increase. If the trade war persists, it could create a macroeconomic environment where digital currencies become a viable hedge against devaluation. The increasing regulatory clarity and growing institutional interest in cryptocurrency could spur wider crypto adoption in future.
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