Former U.S. President Trump stated that new tariffs on China will take effect on November 1, with a rate of 155%. This move has escalated trade tensions and may have a ripple effect on global markets (including the cryptocurrency market).
Market impact: Historical experience shows that trade wars increase market uncertainty. Investors often seek alternative assets to hedge risks, and cryptocurrencies (especially BTC and ETH) may attract capital inflows as a 'digital safe haven'.
Increased volatility: Short-term price fluctuations are expected. Cryptocurrencies are sensitive to macroeconomic events, and sudden risk-off sentiment in the stock market may trigger quick corrections or rebounds in BTC/ETH, depending on market expectations.
Hedging behavior: During uncertain times, stablecoins like USDT and USDC may see increased usage due to temporary capital flight. Activity on decentralized finance lending platforms may surge.
Cross-market correlation: Cryptocurrencies sometimes sync with global market trends. If tensions between China and the U.S. escalate, their correlation with gold and tech stocks will change, creating trading opportunities.
High tariffs = high uncertainty. While cryptocurrencies may benefit as a hedging tool, volatility will surge. Traders need to remain cautious while paying attention to macroeconomic news and on-chain indicators.
Trump announced a 155% tariff increase on China (November 1)
The stock market may experience risk aversion sentiment
Cryptocurrencies may become alternative hedging tools
Expect short-term volatility and trading opportunities
