The trade war initiated by US President Donald Trump is adversely affecting global markets, including cryptocurrencies.
Impact of Trade War on Cryptocurrencies
The trade war between the US and other countries has impacted financial markets, and cryptocurrencies, including Bitcoin, are no exception. The plunge of Bitcoin to levels not seen since November 2024 indicates serious concern among investors.
Experts' Predictions for Bitcoin
Geoff Kendrick, head of digital assets at Standard Chartered, noted that the recent downgrades in Bitcoin's price could signal worsening conditions in the markets. 'Sometimes the cryptocurrency movement on Sunday can indicate what stocks will do on Monday. If the situation remains the same, Monday's market open could be even uglier,' he stated.
Future of Bitcoin as a Hedge
Despite the current decline, Kendrick expressed that Bitcoin will ultimately serve as a hedge against tariffs. He added that the recent sell-off is unlikely to last long, and Bitcoin could return to its closing level of $84,000 unless there is a broader risk-off move in traditional markets.
The decline in Bitcoin is linked to the ongoing trade war and overall market instability. However, experts believe that in the long term, Bitcoin may remain an important hedging tool.
