#TrumpTariffs

Key insights for the crypto market from The TRUMP - CHINA DEAL .

1. Reduced Market Uncertainty:

Improved geopolitical stability often leads to reduced volatility in traditional markets. As a result, crypto might see:

A short-term drop in demand as a safe haven.

But also long-term growth due to increasing trust in global digital finance infrastructure.

2. Boost to Tech and Mining:

Access to rare earths benefits chip manufacturers, which indirectly supports crypto mining hardware production.

Could lower mining equipment costs, making Bitcoin and other PoW networks more profitable.

3. China’s Role in Crypto:

If relations warm and China loosens crypto restrictions (or is more open to blockchain collaboration), we could see:

New Chinese capital flowing into crypto markets.

Increased participation from Chinese exchanges or DeFi platforms.

4. Stablecoin and CBDC Implications:

With improving trade ties, both nations may accelerate development of CBDCs (Digital Dollar and e-CNY).

This could challenge stablecoins like USDT/USDC, or on the contrary, increase their use in cross-border trade if trust improves.