Recently, the cryptocurrency market has shown notable fluctuations amid trade tensions between the US and China. Analysts are expressing warnings and forecasts regarding the further development of the situation.
Cryptocurrencies and Global Markets: Overview
Bitcoin and altcoins rose in price, following the overall increase in global stock markets driven by US President Donald Trump's decision to pause many new trade tariffs. However, China remains under the burden of new tariffs, creating uncertainty in the markets.
Expectations and Warnings from Analysts
According to analysts from trading firm QCP Capital, now is not the time for optimism; instead, it is necessary to prepare for potential countermeasures from China. "If retaliatory measures materialize forcefully, the current rally could quickly morph into a classic bull trap," experts explain. The market is showing signs of top-selling as participants use the price increase to offload unwanted positions.
Bitcoin Prospects Amid Yuan Devaluation
Some experts suggest that devaluation of the yuan could create additional opportunities for Bitcoin. As noted by Sina, co-founder of asset management firm 21st Capital, historical data shows that currency weakening often leads to capital outflow, a portion of which flows into cryptocurrencies. "With rising tariffs and slowing global trade, Bitcoin is becoming not just a hedge but a necessity in the pursuit of stability," he concludes.
The cryptocurrency market is currently in a state of uncertainty, and the events of the trade war between the US and China may significantly impact its development. Investors should exercise caution.
