Tomorrow, President Donald Trump will hold trade negotiations with Mexico and Canada, an event that could significantly impact the US economy as well as the cryptocurrency market. As global capital flows shift due to trade uncertainties, Bitcoin and crypto may become important safe-haven assets.

The importance of US trade with Mexico and Canada

Both Mexico and Canada are heavily dependent on the US in trade activities:

🔹 Mexico

  • 78% of Mexico's exports go to the US.

  • The US exports $320 billion to #mexico , accounting for less than 2.5% of US GDP.

  • Conversely, exports to the US account for 20%–30% of Mexico's GDP, indicating a high level of dependence on the US economy.

🔹 Canada

  • 77% of Canada's exports go to the US market.

  • The US exports $360 billion to #Canada , which accounts for less than 2.5% of US GDP.

  • Exports to the US contribute 20%–30% of Canada's GDP.

President Trump has a negotiating advantage – How does this affect the market?

With the US accounting for a large portion of the import demand for both countries, President Trump is maintaining leverage in negotiations. If negotiations lead to higher tariffs or strong protectionist policies, it could cause significant volatility for:

✅ USD: New policies may increase the value of the USD, putting downward pressure on Bitcoin and altcoins in the short term.
✅ Inflation and interest rates: If trade policies raise the prices of imports, inflation may rise, forcing the Federal Reserve (Fed) to adjust interest rates – a key factor affecting investment flows into crypto.
✅ Market sentiment: If trade tensions escalate, investors may turn to Bitcoin as a safe-haven asset, pushing BTC prices higher.

Could crypto benefit?

In the context of US economic policies potentially causing significant volatility in traditional markets, crypto may become an attractive investment channel due to its decentralized nature and lack of control by any country's monetary policy. Bitcoin and stablecoins could serve as a refuge for capital flows, especially when stock markets are under pressure.

📌 Conclusion
The US-Mexico-Canada trade negotiations not only affect the US economy but also significantly impact global investment flows, including the crypto market. Investors need to closely monitor upcoming developments to formulate appropriate trading strategies. 🚀 #anhbacong