The US-China trade war can affect crypto markets in several ways:
1. Safe Haven Appeal: When traditional markets get shaky due to trade tensions, investors often look for alternative assets. Crypto, especially Bitcoin, is sometimes seen as “digital gold,” so demand may rise during heightened tensions.
2. Currency Devaluation: If either the US or China devalues its currency to gain trade advantages, people might turn to crypto to preserve value. For instance, in past disputes, the Chinese yuan weakening pushed some investors into Bitcoin.
3. Regulatory Uncertainty: Trade wars often come with stricter financial regulations. If either country cracks down on capital movement, more people might turn to decentralized options like crypto.
4. Volatility Boost: Uncertainty from trade wars increases overall market volatility — and crypto is already a volatile space. This can attract traders looking for profit from price swings.
5. Tech Decoupling: The war isn’t just about tariffs — it’s also about control over technology. That could affect blockchain development, mining operations (especially in China), and global cooperation on crypto infrastructure.
