The announcement of new tariffs by U.S. President Donald Trump has caused significant volatility in cryptocurrency markets, hinting at potential similar impacts on stock exchanges.
Crypto Market Reaction to Tariffs
According to crypto analyst Lark Davis, the cryptocurrency market has already reacted to the new tariffs, likely front-running the traditional markets. The decline in Bitcoin and other cryptocurrencies is linked to the negative reaction on the introduction of 'Liberation Day' tariffs.
Expectations for Traditional Markets
Davis notes that equities are expected to decline at the U.S. market opening, considering possible developments in traditional economic sectors. Intervention by countries like Vietnam and Canada in negotiations could improve the situation.
Future Prospects
Experts suggest that this could be the worst phase of the crisis, paving the way for positive changes. Analysts emphasize that deals are inevitable, as most nations find it difficult to resist Trump's aggressive stance without China's involvement.
While short-term uncertainty remains, analysts foresee potential recovery if countries start negotiating and the uncertainty condition is resolved.
