The fact that U.S. President Donald Trump officially imposed a 25% tariff on imported steel and aluminum could spark a new trade war between the U.S. and the European Union (EU). In response to this move, the EU announced it would tax €26 billion worth of U.S. goods starting in April, escalating trade tensions.
Impact on the cryptocurrency market
Increased economic instability → Does cryptocurrency benefit?
As trade tensions escalate, the stock market may face downward pressure, leading investors to seek alternative assets like Bitcoin (#BTC ) and gold as a risk hedge. If the conflict persists, safe-haven capital flows may pour into crypto, creating upward momentum for BTC and other digital assets.
A stronger USD could create downward pressure on crypto
If the trade war increases demand for the USD as a safe asset, Bitcoin may face selling pressure as investors shift assets to USD. History shows that a rising USD often leads to a decline in BTC, as BTC is still primarily priced in USD.
The EU may accelerate CBDC development
In the context of trade instability, #Eu may enhance testing of the digital euro (CBDC) to reduce dependence on USD and limit the impact of U.S. policy. If this occurs, the stablecoin market may also be affected.
Conclusion
This event could create short-term upward momentum for BTC if traditional financial markets weaken. However, if the USD strengthens significantly, crypto may face selling pressure. Investors should closely monitor developments to adjust their strategies accordingly.