As the US-India tariff war may flare up or cool down, the secret to wealth in the crypto world is crazily growing in the shadows!
Attention, fellow warriors in the crypto sphere! This ongoing six-month tug-of-war over tariffs between the US and India may become the biggest "gray rhino" event in the crypto market this July. According to the latest negotiation details, the US demands that India reduce tariffs on auto parts from 60% to 15%, while India steadfastly defends its agricultural red line. This seemingly traditional trade game actually hides three major points of explosion in the crypto market:
First, the expectation of tax cuts in India may ignite local crypto demand. Referring to the disaster in 2022 when India implemented a 30% crypto tax + 1% TDS, leading to a 90% plummet in trading volume, if this trade agreement prompts India to lower TDS to 0.1%, it will directly activate the trading enthusiasm of the world's second-largest crypto population. It is estimated that by 2025, the scale of India’s crypto market will reach $15 billion, and even a 1% tax rate adjustment can release hundreds of millions of dollars in liquidity.
Second, the loosening of dollar hegemony gives rise to "decentralized hedging". Trump's demand for India to implement zero tariffs on US products is essentially another harvest of dollar hegemony. However, looking at the case in 2018 when the Indian central bank's ban was overturned by the Supreme Court, when the traditional financial system loses trust, the property of cryptocurrency as a "digital safe haven" will surge. If India is forced to accept an unequal treaty this time, it may accelerate the development of its central bank digital currency, and the demand for Bitcoin as an "anti-censorship asset" will simultaneously soar.
Third, geopolitical shocks compel institutions to allocate crypto assets. The stalemate in US-India negotiations has led to an increase in India's exports to the US from $14.17 billion in April to $17.25 billion in May. This strategy of "hedging tariffs with exports" precisely replicates the tactics of Chinese companies during the 2020 US-China trade war. At that time, Bitcoin surged from $8,000 to $60,000, and the case of institutions using crypto assets as a "tariff hedging tool" is still cited by Wall Street today.
Opportunities are fleeting; the pullback is imminent. Buy the dip and position yourself in spot trading; the profits from altcoins are waiting for you! Doubling your investment is not a dream. Tap on the avatar to follow me and join the feast of the bull market!
