The cryptocurrency market entered the trading day on April 15 with an unstable sentiment, mainly stemming from global political fluctuations. From the trade war between the U.S. and China to geopolitical tensions in the Middle East, all are blowing strong winds into the volatility of digital currencies.
President Donald Trump, who was recently re-elected, continues to surprise investors by reactivating tariffs on goods from China, Canada, and Mexico. This is the first shock that has led investors to seek safe-haven assets like gold instead of Bitcoin, as is usually seen, due to a cautious sentiment regarding unclear crypto policies. Meanwhile, Trump's public support for the U.S. becoming the 'crypto capital' and considering the establishment of a Bitcoin strategic reserve sends a mixed message: both promising and ambiguous.
Not stopping there, the escalating conflict between Israel and Hezbollah has caused the Bitcoin Volatility Index to spike significantly. Investors are fleeing leveraged positions, leading to a total liquidation value exceeding 260 million USD in just 24 hours. Also that night, the OM (MANTRA) token unexpectedly 'free-fell,' losing 15 times its value, causing waves of concern about the reliability of altcoin projects.
In Vietnam, despite having over 17 million people holding digital assets, the lack of a clear legal framework continues to be a major barrier. Digital assets have not yet been legally recognized, creating a shadow market that poses both legal and financial risks.
In summary, the current political landscape makes the crypto market more unpredictable than ever. While 2021-2022 was a growth period fueled by low-interest cash flow, currently, every tweet or policy decision from world leaders can either 'green' or 'red' the entire market.
Investors need to stay alert, keep up with current events, and adhere to risk management principles during this volatile period.
