The ongoing trade war between the US and China, intensified by new tariffs, significantly affects the cryptocurrency market. This article explores the implications and current situation.
Implications of US Tariffs
The US has announced a new 104% tariff on Chinese goods set to take effect on April 9. This decision adds further uncertainty to global markets and the cryptocurrency sector. Existing tariffs have already created tension, and this increase may pressure many economic areas.
China’s Resilience
Chinese officials claim that the US may face more severe issues as the value of the dollar might decrease. In this context, Trump's previous statements about the need for compromise are unheeded, and Chinese representatives refuse to concede.
Market Volatility
The cryptocurrency market reacted sharply with a decrease in prices. Bitcoin fell below $77,000, leading to liquidations amounting to $50 million. Experts believe such volatility indicates potential downturns in the future for Bitcoin, Ethereum, and other cryptocurrencies.
The trade conflicts between the US and China create challenging conditions for the cryptocurrency market. Market participants need to adapt their strategies to the changing economic landscape.
