#RiskRewardRatio

The risk-reward ratio measures potential profit against potential loss in investments like Bitcoin, especially during events like tariffs—taxes on imports. New U.S. tariffs recently caused a 5-10% Bitcoin price drop, raising risks for investors as markets reacted nervously. Higher tariffs can increase mining equipment costs, squeezing U.S. miners’ profits. However, the reward could be significant if tariffs weaken the dollar, driving demand for Bitcoin as a safe haven. A 90-day tariff pause recently boosted Bitcoin’s price, showing volatility. Diversifying assets helps balance this ratio, reducing risk from tariff-driven swings while preserving potential gains.