Crypto traders are focusing on today's 23:00 GMT announcement of US tariffs including China, Canada, and Mexico.
Previous Tariffs and Market Impact
US tariffs are impacting not only trade balances but also financial markets. A decline of over 2% in the S&P 500 index over the last five days signifies reduced risk appetite among traders. Cryptocurrencies, increasingly linked to traditional assets, are directly affected by these developments.
Bitcoin and the 'Digital Gold' Scenario
Omid Malekan from Columbia Business School believes that despite current challenges, Bitcoin could eventually take gold’s place and thrive. He suggests that both the cryptocurrency market and tariff policies are relatively new and complex, leading to differing opinions among investors.
Expectations for Bitcoin and Altcoins
Zach Pandl from Grayscale suggests the worst may already be reflected in prices, indicating hope for improvement. He emphasizes today’s tariff announcements may come in a harsh but gradual manner, potentially easing market tensions. Sid Powell from Maple hopes for a softer market reaction and a quick recovery for Bitcoin and altcoins.
The upcoming tariff announcement could trigger significant shifts in the cryptocurrency market, offering both risks and opportunities for traders.
