Weekly Fundamental Crypto Outlook: Is Trump Affecting Market Confidence?
Cryptocurrencies have started to show a decline in short-term confidence as new fundamental factors emerge—particularly the recent comments by President Trump, which point to a possible reactivation of the trade warTrump’s New Threats
On October 10, President Donald Trump made remarks suggesting new retaliatory measures against China, in response to export restrictions imposed by Beijing on rare earth materials and key components used in the production of chips and electric vehicles.
Trump once again adopted an aggressive tone, calling the move an “economic aggression,” and warned that his administration is preparing strong countermeasures, potentially through new tariffs on Chinese technology goods. Although no specific rates were mentioned, it’s worth recalling that during the last escalation, proposed tariffs reached as high as 200%.
These comments have heightened risk perception in financial markets, leading the crypto sector to lose its temporary safe-haven appeal and revert to its traditional status as a risk asset. In times of uncertainty, investors tend to move their capital into safer instruments, which undermines cryptocurrency performance.
Indeed, Bitcoin’s (BTC) open interest has started to trend lower, falling toward $43.1 billion. Combined with the decline in BTC’s price, this points to a steady outflow of long positions, partly due to profit-taking at recent highs. Now, the increase in global risk is accelerating position liquidations, putting downward pressure on Bitcoin demand in the short term.Cryptocurrencies have started to show a decline in short-term confidence as new fundamental factors emerge—particularly the recent comments by President Trump, which point to a possible reactivation of the trade war. This development has halted the early-week bullish momentum, prompting the market to shift toward traditional safe-haven assets. If these risks of a renewed trade conflict persist, economic uncertainty could intensify, $BNB
