#TrumpTariffs

Impact of Trump Tariffs on World Finance and CryptocurrencyWorld Finance:

Trump’s 2025 tariffs (10-54% on China, 25% on Canada/Mexico) have disrupted global markets, causing a 20% S&P 500 drop and Nasdaq declines due to trade war fears. Tariffs raise import costs, fueling inflation and potentially cutting U.S. GDP by 2%. A stronger U.S. dollar hurts exports and risk assets, while trade retaliation fragments global trade. Investors favor safe-haven assets like gold, up 18% in 2025, amid market volatility.

Cryptocurrency: Cryptocurrencies face indirect tariff impacts. Bitcoin fell from $109,000 to $74,500 and Ethereum dropped 28% after tariff announcements, with $180 million in market value lost in a day. Tariffs on Chinese tech imports raise mining hardware costs, squeezing miners’ profits, especially in the U.S. and Canada. Liquidations hit $8 billion in February 2025, amplifying price volatility due to risk-off sentiment.

Is Crypto Immune?: No, crypto isn’t free from negative impacts. Short-term, it correlates with risk assets like stocks, suffering price drops and mining cost hikes. However, Trump’s pro-crypto policies, like stablecoin legislation and a Bitcoin Strategic Reserve, could drive long-term adoption. Tariffs may also spur de-dollarization, boosting Bitcoin and stablecoins as neutral assets. Analysts see Bitcoin potentially hitting $150,000 if economic instability persists.

Conclusion: Tariffs disrupt global finance with inflation, volatility, and trade shifts, impacting crypto through market correlation and higher mining costs. While short-term declines hit hard, crypto’s long-term resilience as a hedge against economic uncertainty and supportive policies could drive recovery. Investors should stay cautious, diversify, and monitor tariff and regulatory developments.

Tips: Buy and hold $PAXG don’t ask me why? because that's the only way to get rid of this disaster.