Trade wars initiated by US President Donald Trump have significant implications for the global economy and the cryptocurrency market.
The Nexus Between Trade Wars and Cryptocurrencies
Trump's announced tariffs catalyzed a drop in major cryptocurrencies like Bitcoin and Ethereum, as digital assets remain sensitive to global economic events.
Trump’s tariff war is impacting the whole marketCaroline Bowler
Why Tariffs Matter for Cryptocurrencies
Tariffs can lead to inflationary pressure, increasing costs which may prompt central banks to hike interest rates, thus strengthening the dollar and potentially reducing Bitcoin prices.
Investor Sentiment and the Role of Meme Coins
Meme coins like Dogecoin have been significantly affected, reflecting a downturn in investor interest in speculative assets.
While short-term reactions are negative, some investors see a long-term potential for Bitcoin's strengthening position due to the trade wars.
