#TariffPause How to predict what cannot be predicted. Turn to the lessons of the past.
In 2018 and 2019, the aggressive tariff policy of the Trump administration caused volatility in global financial markets. Cryptocurrencies, although not directly linked to the trade disputes, were not untouched.
Key points:
* Uncertainty in global markets: the trade war caused uncertainty among investors, leading to capital outflows from traditional assets. Some investors turned to cryptocurrencies as alternative assets.
* Strengthening of the US dollar: tariffs led to a strengthening of the US dollar, which put pressure on cryptocurrency prices that are often traded against the dollar.
* Risk-off sentiment: the trade war caused risk-off sentiment in the markets, leading to a decline in prices of risky assets, including cryptocurrencies.
Pause in the trade war:
When the tension in the trade war eased, the markets reacted positively. The pause in Trump's aggressive tariff policy led to:
* Reduction of uncertainty in the market: this led to an influx of capital into financial markets, including cryptocurrencies.
* A weakening of the US dollar: this supported cryptocurrency prices.
* Risk-on sentiment: this led to an increase in prices of risky assets, including cryptocurrencies.
Conclusion:
Although cryptocurrencies were not directly related to the trade war, they still suffered from its consequences. The pause in Trump's aggressive tariff policy had a positive effect on the cryptocurrency market, indicating a connection between global economic events and the cryptocurrency market.
Hashtags:
#cryptocurrency #trade war #Trump #economy #investments #market #finance #bitcoin #ethereum #blockchain.