Woke up and wondered where my position went, turns out it was closed for profit🤣
On 5/12, the easing of the trade war usually has the following effects on the cryptocurrency market:
1. Increased risk appetite:
• The easing of the trade war helps stabilize the global economy, increasing investors' risk appetite, and capital may flow into risk assets, including cryptocurrencies.
2. Reduced demand for safe-haven assets:
• When market risks decrease, investors' demand for safe-haven assets (such as gold and stablecoins) declines, which may affect the role of cryptocurrencies like Bitcoin as safe-haven assets.
3. Improved fiat currency stability:
• The easing of the trade war will stabilize the exchange rates of major fiat currencies, reducing the risk of fiat currency depreciation, which may suppress the demand for cryptocurrencies as a hedge against fiat depreciation.
4. Fluctuations in trading volume:
• In the context of increased risk appetite in the cryptocurrency market, there may be a short-term increase in trading volume, but if market confidence strengthens and the attractiveness of traditional assets increases, cryptocurrency trading volume may also decrease.
5. Impact of regulatory policies:
• The easing of the trade war may promote cooperation among countries, including the coordination of cryptocurrency regulation, which may bring new rules or relaxed policies.
