Amid an escalating trade war between the US and China and new economic measures, cryptocurrency investors need to stay alert to the changing situation.
US Data and Trade War
In March, the US created 228,000 jobs, exceeding expectations, however, the unemployment rate rose to 4.2%. The increase in jobs was observed in healthcare and social assistance, which indicates that growth is reliant on the service sector. However, due to tariffs, Japanese stock markets dropped by 12%, while US markets fell by 10%.
Cryptocurrencies and China's Moves
China imposed an additional 34% tariff and added 11 US companies to its unreliability list, which may impact the cryptocurrency market. Companies such as Skydio and Kratos Unmanned Aerial Systems are subject to these restrictions.
Conclusion and Future of the Crypto Market
The economic situation forces governments to pursue monetary expansion to sustain their economies. Current conditions create risks for cryptocurrency investors, particularly regarding the potential escalation of the trade war, making the future of the crypto market uncertain.
The trade war between the US and China is intensifying, significantly impacting global markets, including cryptocurrency. Investors should consider these changes in their strategies.
