The US continues to increase the tariff rate to 245% on Chinese goods.

China also previously declared that if the US continues to raise tariffs, they will not care anymore, as a rate above 100% is already too high, and any further increase would only be nominal.

US officials are working with more than 70 countries to prevent China from transporting goods through their territories, aiming to isolate Beijing economically.

The stock market has declined but is no longer reacting too strongly => indicating that the market has accepted and is gradually getting used to this situation, and crypto is the same. Ultimately, it is still the battle between the US and China.

In the previous post, I mentioned how tariffs directly affect the stock market, as traditional companies need to import and export materials - goods between countries, and many manufacturing processes are done in China => suffer losses from tariffs, negatively impacting stock prices.

However, crypto is indirectly affected, as tariffs have nothing to do with coins.

$BTC is more similar to gold than stocks and is actually regarded as digital gold. When the economic and political situation is unstable, gold tends to rise as it is a safe-haven asset/value storage.

According to Anthony Pompliano (CEO of Professional Management): Even though Bitcoin has dropped since the beginning of the year, over the past year, both Bitcoin and gold have increased by about 35%. Gold often leads the bull market, with Bitcoin following and increasing more strongly.

The Chinese central bank has been continuously injecting money to support the economy, while the US central bank (FED) is still standing by and observing. In the long term, regardless of the outcome of this trade war, money will continue to be printed and depreciated, and assets will continue to appreciate.

In addition, Onchain shows signs that many Whales are accumulating large amounts and withdrawing to wallets in the past few days. Long-term holders + Whales are acting contrary to the general market sentiment at this stage.


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