Cryptocurrency investors are striving to understand the unfolding events during one of history’s largest trade crises. Macroeconomic changes significantly affect the market.
U.S. Trade Imbalance
U.S. import figures surpassing $4 trillion have led to a significant trade deficit. The $3 trillion deficit, coupled with tariffs on goods, has become a focal point of discussion. President Trump claims that the U.S. economy has been exploited for years due to unfair tax policies. However, Canada and Mexico face tariffs on exports, even though they are in a special status. Major contributors to the deficit include machinery and automotive imports.
Future of Cryptocurrencies Amid Crisis
China is now facing an additional tax burden of 54%. Fitch downgraded China’s long-term rating, indicating worsening financial circumstances. "We expect China’s general government deficit to rise from 6.5% of GDP in 2024 to 8.4% in 2025." – Fitch. This backdrop may lead to increased liquidity, thus boosting interest in cryptocurrencies.
Potential Solutions and Their Complexities
Countries like the EU and China may need to consider relocating production to the U.S. or eliminating tariffs, although both options are complicated. We are witnessing the first significant rupture in the global economy since World War II. In the coming days, the response of countries to tariffs will help clarify the direction of the economy and the cryptocurrency market.
The trade crisis creates uncertainty for cryptocurrencies, suggesting potential stagnation or negative movements in the market. Expect reactions from countries that could alter the current situation.
