With the easing of global trade tensions, digital currencies emerge as one of the assets that may benefit from improved economic conditions. Trade wars, such as those witnessed between the United States and China, Canada, and Mexico, caused sharp volatility in financial markets, prompting investors to seek safe or high-yield alternatives, including cryptocurrencies. Here is an analysis of the implications of this shift:
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1. Cryptocurrencies as a safe haven during crises
During periods of trade wars, confidence in traditional currencies weakens, and fears of inflation and declining economic growth increase. This is where digital currencies – particularly decentralized ones like Bitcoin and Ethereum – emerge as a hedging tool, given their independence from central banking systems and their ability to circumvent tariff restrictions. For example, during the crisis between the U.S. and China in 2024, the demand for Bitcoin in China surged through informal platforms as a means to transfer money outside the traditional system.
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2. The impact of trade war easing on markets
With signals of tariff relief (as seen in Trump's announcement in April 2025), markets are responding positively. Cryptocurrencies have witnessed notable increases, as investor sentiment and expectations for more stable economic growth have improved. For instance, the price of Bitcoin rose by 10.66% within a week after the announcement of sanction relief. However, volatility remains a key characteristic of these assets, especially with changing policies of major countries.
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3. The increasing role of Central Bank Digital Currencies (CBDCs)
Governments are trying to keep up with this shift by developing official digital currencies, such as the 'digital dirham' in the UAE and the 'digital yuan' in China. These projects aim to enhance monetary sovereignty and reduce reliance on the traditional financial system, especially amid trade wars that threaten global supply chains. These steps could create a balance between decentralization and government oversight.
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4. Ongoing risks and challenges
Despite the opportunities, cryptocurrencies face significant challenges:
- Sharp volatility: Bitcoin dropped to below $100,000 in February 2025 due to inflation fears.
- Security threats: Platforms are subjected to recurring hacks, as occurred with the 'HyperLiquid' platform hack in 2024.
- Government regulation: Countries like China impose strict restrictions, while others (such as the European Union) are working on establishing a tax and legal framework.
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5. Future opportunities in the post-trade war phase
- Financial inclusion: Digital currencies could help integrate the unbanked into the financial system, especially in developing countries.
- Alternative international trade: Countries like Iran and Russia have started using cryptocurrencies to evade sanctions, which could reduce the dominance of the dollar.
- Technological innovation: Accelerating the development of digital payment infrastructures, such as third-generation blockchain technologies.
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Conclusion:
With the easing of the trade war (#TradeWarEases), cryptocurrencies may witness a new phase of maturity, as institutional investor confidence (such as companies like Fork of It that have pumped billions of dollars into Bitcoin) strengthens. However, diversification and following strict investment strategies – such as utilizing ETFs or investing in supporting technology companies – remain essential to avoid risks. Ultimately, these digital assets could be part of more sustainable solutions for a multipolar global economy.
#TradeWarEases
