#LearnAndDiscuss

The tariff policies set by Trump will escalate market uncertainty and risk aversion sentiment. When markets see that the April 2 tariffs mark the end of uncertainty, they expect an increase in volatility.

*Cryptocurrency markets, including Bitcoin (BTC), will face short-term challenges as they deal with increased uncertainty, inflation fears, and a risk-averse market environment with the upcoming tariff policy and its implementation.

The upcoming tariff policy and its implementation may also create short-term headwinds for cryptocurrency markets due to increased uncertainty, inflation fears, and a risk-averse market environment. Cryptocurrencies, including Bitcoin, are closely linked to stock markets like NASDAQ, which may face downward pressure as heavy technology indices decline.

This points to factors such as investors' misperception of risks, increasing uncertainty about tariffs, withdrawal of foreign and institutional capital from U.S. stocks, and the lack of leadership from major companies in the market.

Foreign investors have withdrawn $6 billion from U.S. equity funds, marking the third-largest recorded withdrawal, indicating a broader flight from risk assets. This leads to a short-term decline in Bitcoin's price as investors seek safer havens like the dollar or gold.