#TrumpTariffs Donald Trump's proposed tariffs have sparked concerns about their potential impact on the global economy and cryptocurrency market. Here's what's trending:
Impact on Cryptocurrency Market
- *Volatility*: The cryptocurrency market experienced increased volatility following Trump's tariff announcement, with Bitcoin dropping 5.2% and other major tokens like XRP and Ether declining 6% and 5.4%, respectively.
- *Risk Aversion*: The drop in crypto prices signals a broader shift towards risk aversion across financial markets, with crypto futures liquidations surging to $511.77 million in 24 hours.
Potential Effects on Bitcoin
- *Flight to Safety*: Some experts believe that cryptocurrencies like Bitcoin could benefit from a "flight to safety" if investors lose confidence in traditional assets due to tariffs.
- *De-dollarization*: Bitcoin might also benefit from any de-dollarization trend, potentially becoming a reserve currency or store of value.
Expert Opinions
- *Professor Andrew Urquhart*: Suggests that Trump's tariffs might be good for Bitcoin in the long run, citing potential benefits from market activity and regulatory clarity.
- *Market Analysts*: Some analysts predict that Bitcoin's price could jump to $150,000 despite short-term volatility ¹ ².
Cryptocurrency Performance
- *Bitcoin*: Dropped to around $83,000 after Trump's tariff announcement, but some experts predict potential growth.
- *Other Cryptocurrencies*: Major tokens like XRP, Ether, and Solana also declined following the announcement