*How can tariffs impact cryptocurrency markets?
Key points
Tariffs are taxes that governments impose on imported goods. The idea is to make foreign products more expensive so that local companies can compete better.
In the short term, tariffs often create uncertainty and volatility in the market. Depending on how they are announced and implemented, investors may shy away from riskier assets like stocks and cryptocurrencies, leading to price declines.
Tariffs on imported mining hardware and semiconductor chips can also increase operating expenses for miners who rely on imported products.
In the medium and long term, there is the possibility that crypto assets, particularly Bitcoin, may become more attractive as a hedge against inflation and weaker fiat currencies.