In recent years, the world has witnessed a growing trade tension between global powers, with protectionist policies and tariff wars led by figures like Donald Trump. As traditional markets react with fluctuations and adjustments, the question arises: how do these economic movements affect cryptocurrencies?
The immediate impact: extreme volatility
Cryptocurrencies are known for their volatility, but trade tensions have added a new layer of uncertainty. The tariff war has wreaked havoc on global markets, driving the search for safe havens like gold. However, cryptocurrencies have reacted in mixed ways, with declines in value due to economic uncertainty, but also with flashes of optimism as a financial alternative.