#TariffsPause

Tariffs Pause brings short-term stability to digital currency, but the market remains sensitive to trade policies. Investors need to closely monitor developments in tariffs and macroeconomic impacts to make informed decisions.

Correlation with Traditional Markets: Digital currencies, especially Bitcoin and Ethereum, often move in line with stock market trends. A shock from tariffs could cause the S&P 500 or Nasdaq to decline, dragging digital currencies down. Be prepared for short-term bearish scenarios if trade tensions escalate.

Mining and Production Costs: Tariffs may increase the prices of technology components (such as GPUs and ASICs) imported from China, affecting the profitability of cryptocurrency miners. This could lead to a decrease in new supply, indirectly impacting prices. Investors should pay attention to reports from major mining companies like Riot Platforms or Marathon Digital.

Investor Sentiment: The recent recovery of Bitcoin (up to $80,000) and Ethereum indicates confidence in digital currencies as a safe-haven asset amid a weakening USD. However, if inflation rises due to trade costs, investors may pull out of digital currencies in search of other assets. Monitor the CPI index and interest rates from the Federal Reserve (Fed) to assess trends.

Long-Term and Diversification: If tariffs diminish the role of the USD, Bitcoin could benefit as “digital gold.” However, geopolitical risks and regulatory constraints (such as mining restrictions in the U.S.) need to be considered. Diversifying the investment portfolio between digital currencies, gold, and fixed assets is a wise strategy.