#TariffsPause A potential pause in tariffs between the US and China could significantly impact the crypto market. Bill Ackman suggests that both countries are incentivized to reduce tariffs to reasonable rates (10-20%), which could trigger a bullish rally in the crypto market. If the US and China reduce tariffs, it could attract more companies to invest, increasing the adoption of cryptocurrencies. A 180-day pause in tariffs could pave the way for negotiations, potentially boosting the crypto market.
The impact of tariffs on crypto is evident in recent market reactions. When the US announced a 50% tariff on Chinese imports, the crypto market reacted swiftly, with Bitcoin's price dropping to $74,500 and Ether declining over 20%. However, after President Trump paused most tariffs for 90 days, Bitcoin rebounded above $92,000. On the other hand, US Bitcoin miners face increased operational costs due to tariffs on imported mining equipment, which could squeeze smaller operations. Understanding these dynamics is crucial for crypto investors to navigate market volatility .
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