A trade war, marked by escalating tariffs and economic barriers between countries, often creates global market uncertainty. This instability can drive investors toward alternative assets like cryptocurrencies, which are decentralized and not directly tied to national economies. During such periods, crypto prices may surge as traders seek safe havens. For instance, U.S.-China trade tensions have historically coincided with spikes in Bitcoin's value. However, crypto markets are also volatile, and their legal status varies globally, adding complexity. While trade wars can boost crypto appeal temporarily, long-term effects depend on broader economic and regulatory developments influencing investor confidence and market dynamics.
