As ceasefire negotiations between Russia and Ukraine conclude, a trade conflict overshadows global markets. Recent actions by Trump have affected inflation and risk markets, especially cryptocurrencies.
What Triggers the Trade War?
The onset of global tariffs on steel and aluminum has triggered retaliatory actions from the EU and Canada. Experts voice concerns that these trade tensions could negatively impact economic growth. Although recent inflation statistics offered a silver lining, they did not meet expectations, leading to fears of increased inflation due to tariffs.
Will Tariffs Impact the Economy?
Yes, the tariffs implemented have already begun to raise steel prices globally, resulting in increased costs for businesses reliant on U.S. steel. This situation not only restricts the export capabilities of the U.S. economy but could also lead to contraction, putting it at greater risk than other nations.
- February 4: 10% tariff on all imports from China. - March 4: 25% tariff on all imports from Mexico. - 25% tariff on most items from Canada. - Additional tariffs have been announced on agricultural products and foreign cars.
Consequences for the Cryptocurrency Market
With the looming threat of a global economic slowdown reminiscent of the 2008 crisis, risk markets are feeling the impact. Severe sell-offs in cryptocurrencies are evident as market sentiment shifts. The data indicates Bitcoin must quickly reclaim $90,000 to avoid further weakness, while analysts predict a possible dip to $69,000.
Current market conditions signal potential challenges for cryptocurrency holders as new tariffs and their economic repercussions take center stage.
Cryptocurrency markets face high volatility amid current trade tensions. Investors are faced with uncertain prospects due to economic challenges.
