Geopolitics The recent events have confirmed that cryptocurrency markets are no longer isolated from geopolitical tensions and macroeconomic factors but have become directly and sharply affected by the escalation of international conflicts, especially the trade war between the United States and China. Washington's recent decision to impose new comprehensive tariffs and export restrictions on Beijing has not only had a devastating impact on technology stocks and commodities but has also caused a rapid and significant collapse in the total market capitalization of cryptocurrencies, wiping hundreds of billions of dollars in value. This reinforces the fact that Bitcoin, Ethereum, and altcoins are classified as "high-risk" assets that are subject to widespread selling during periods of global uncertainty that drive investors towards safer assets such as gold or government bonds. TradingView analysis shows that the sharp drop in prices and the triggering of liquidation waves in futures contracts was an immediate reaction to the shift from political rhetoric to the implementation of aggressive economic policies. The restrictions imposed on technology, semiconductors, artificial intelligence, and blockchain infrastructure represent pressure on global supply chains in the technology sector, which relies on innovation in cryptocurrencies. This increases uncertainty regarding costs and production, which lowers investor sentiment in crypto assets that are closely linked to technological growth. This collapse illustrates that the theory that Bitcoin is a "non-correlated safe haven" from geopolitical conflicts needs a radical re-evaluation. When geopolitical tensions escalate and global capital flows are affected, Bitcoin is viewed as an asset that can be easily sold to cover losses in other markets or to provide cash liquidity. This strong correlation with global trade wars makes it more susceptible to volatility than traditional assets. At the same time, this event highlights the importance of monitoring Chinese political and economic reactions. If Beijing reciprocates, the cycle of tension will continue, putting immense and ongoing pressure on the cryptocurrency market. What has happened is a real test of market resilience in the face of external shocks, and the outcome indicates relative fragility driven by the liquidation of high-leverage positions, confirming the necessity of caution and adopting more conservative hedging strategies in an increasingly conflictual and politically and economically volatile global environment where Bitcoin becomes a measure of the level of global geopolitical risks.
#Trade_War #Crypto_Crash #Geopolitical_Risks #تصفية_المراكز
