With Trump's tariff stick swinging, the crypto space is either heaven or hell — tonight you either pick up money or get cut!
Impact on the crypto market
Short-term bearish, the market may be scared!
With Trump raising tariffs, the first reaction of global funds is to flee! Bitcoin and Ethereum, being major coins, will definitely take the brunt, as large funds panic and first sell off liquid assets. Referencing the tariff news from May 2023, Bitcoin dropped 5% in a day, leading to billions in liquidations! If panic spreads tonight, there could be another short-term sell-off.
Miners and exchanges may suffer!
Mining costs are rising: If tariffs affect the import of mining machines, then mining costs will increase, and miners may be forced to shut down, leading to a decline in hash rate, which may temporarily impact Bitcoin's network security.
Exchange pressure is high: During market crashes, exchanges are prone to lag and glitches; leveraged players should be careful of liquidation!
But! Long-term could be an opportunity!
Inflation may be more severe: Tariffs push up product prices, and the Federal Reserve may be forced to cut interest rates, making money less valuable, which could benefit Bitcoin instead.
Dollar Credit Crisis? If the tariff war undermines the dollar's credibility, large institutions may be more willing to buy Bitcoin as a hedge, just like during the Russia-Ukraine conflict in 2022, when BTC was traded as 'digital gold'.
Long's personal view:
Short-term: Beware of a sharp decline! Don't rush to buy the dip; wait for market sentiment to stabilize.
Medium-term: If Bitcoin drops to around 100,000, it could be a good opportunity to buy in batches.
Long-term: The longer the tariff war lasts, the more appealing Bitcoin's 'anti-inflation' story becomes; hold onto your core positions and don't get shaken out!
Is tonight a risk or an opportunity? #美国加征关税
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