SHARP DROP IN CRYPTO MARKETS: IMPACT OF US TARIFFS AND INFLATION
Bitcoin and other cryptocurrencies continue to lose value recently due to the influence of the US trade policies and inflation data. Bitcoin, which rose to $88,700 last week, has dropped to around $81,200 over the weekend. This decline is seen as a reflection of investors' tendency to avoid risk.
US President Donald Trump's new customs tariffs, which will come into effect on April 2, are increasing uncertainty in the markets. Trump plans to implement global tariffs of up to 20% on all trading partners and refers to this move as “Liberation Day.” Economists warn that such tariffs could heighten tensions in global trade and negatively impact economic growth.
Furthermore, the Personal Consumption Expenditures (PCE) data released in the US came in higher than expected, raising inflation concerns. Investors believe that high inflation may threaten economic stability, leading to a flight from risky assets.
Cryptocurrency markets respond sensitively to developments in traditional financial markets. In particular, Bitcoin and altcoins continue to lose value under the influence of US trade policies and inflation data. As global risks increase, investors are adopting a more cautious approach.
In light of these developments, it is anticipated that prices of Bitcoin and altcoins may decline further due to the impact of the customs tariffs that will take effect on April 2. It is important for investors to review their strategies considering the uncertainties and risks in the markets.
