Recently, with the United States imposing additional tariffs, are friends in the cryptocurrency space also feeling anxious? Don't worry, this matter could indeed affect our investments.
Think about it, once tariffs are added, the prices of imported goods rise, and inflation may rear its head. The Federal Reserve, in order to control inflation, might have to raise interest rates. Once interest rates rise, the dollar appreciates, and everyone is more inclined to hold onto dollars, which could put selling pressure on cryptocurrencies like Bitcoin. Historically, there have been several instances of price declines during interest rate hike cycles.
But let's not forget, crises often come with opportunities. As the trade war escalates, global economic uncertainty increases, and some may view Bitcoin as a safe-haven asset. Furthermore, tariffs could accelerate the process of some countries 'de-dollarizing', leading them to embrace cryptocurrencies.
Therefore, this situation poses both challenges and opportunities for the cryptocurrency space. We must stay vigilant, closely monitor market dynamics, and manage risks effectively.