$BTC The new tariffs announced by Donald Trump are impacting the cryptocurrency market, including Bitcoin. Currently, BTC has dropped about 5.4%, trading around $81,921.
Why is this happening?
The tariffs imposed on imports create economic uncertainties, leading investors to seek safer assets like the US dollar and government bonds, while riskier assets like stocks and cryptocurrencies decline. Additionally, the impact on supply chains may slow down global economic growth, affecting the liquidity available for investments in crypto.
Main effects on the market:
• Increase in volatility: The cryptocurrency market recorded approximately $450 million in liquidations of future positions.
• Depreciation of Bitcoin: With investors seeking safer assets, BTC has lost part of its value.
• Impact on the dollar: If the tariffs weaken the US economy, the dollar may lose strength, which in the long run could benefit Bitcoin as an alternative store of value.
What to expect moving forward?
The impact depends on the market's response to Trump's trade policies. In the short term, the trend is towards increased volatility, but in the long term, if the dollar depreciates and investors lose confidence in traditional markets, Bitcoin and other cryptocurrencies may become more attractive as a store of value.
