Ongoing U.S.-China tariff war is already shaking global markets, and crypto is definitely feeling the impact. Here's a breakdown of how things are unfolding and what could come next for crypto:

1. Why Crypto Is Down Right Now

Flight to Safety: As traditional markets react to the trade war, many investors are moving to safe-haven assets like gold and U.S. Treasuries, not riskier assets like crypto.

Stronger Dollar & Inflation Fears: U.S. inflation expectations are high, and the dollar is in flux. When the dollar strengthens, crypto usually drops — and vice versa.

Regulatory Uncertainty: With the economic tension, the U.S. and China may crack down more on decentralized markets to protect their own financial systems.

2. Market Sentiment Right Now

#Bitcoin (BTC) and #Ethereum (ETH) have both dipped over the last week.

Altcoins are struggling even more, especially those tied to utility or cross-border trade use cases.

Stablecoins are seeing higher volume, which usually happens when traders are parking their money waiting for market clarity.

3. Short-Term Outlook (Next 3-6 Months)

Volatility: Expect more price swings as trade negotiations stall or escalate.

Retail Caution: Less money flowing from average investors due to economic stress and inflation.

Institutional Watchfulness: Big funds might wait for regulation clarity and signs of trade calm before reentering aggressively.

4. Long-Term Outlook (1+ Years)

Bullish Potential: If the trade war damages fiat trust or global banking systems, crypto could benefit as an alternative store of value.

China’s Role: If China tightens capital controls, more Chinese investors may turn to crypto (historically bullish for #BTC).

U.S. Regulation: A future U.S. crypto-friendly administration or legal clarity could spark a major rebound.

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