Over the past hundred days, the U.S. administration has followed a protectionist policy that included imposing tariffs of 25% on steel and aluminum imports, along with adjusting duties on certain trade partners. These measures have affected investor sentiment, noting a shift of liquidity from traditional assets to cryptocurrencies, while the U.S. continued to explore ways to integrate Bitcoin into reserve strategies without issuing an official executive order to create a 'strategic reserve' for it.
1. Trade and Protectionism Impact
25% Tariff on Steel and Aluminum: The aim is to bolster the domestic industry; however, rising costs have raised concerns about reduced production and increased price pressures.
Tariff adjustments on partners: Some countries included higher tariff rates, leading markets into a temporary negotiation cycle aimed at cooling tensions.
2. Impact of Volatility on Digital Markets
Traditional assets have experienced noticeable volatility but some indicators quickly rebounded after a temporary truce with several partners was reached.
Cryptocurrencies, particularly Bitcoin, benefited from the influx of liquidity seeking hedging alternatives, supporting its temporary rise and reviving trading activity in the major pairs.
3. Current Bitcoin Dynamics
Price Range: Bitcoin has settled into a range between key support and resistance levels, influenced by the pulse of politicians' statements.
Hedging Role: Some traders tend to increase their Bitcoin holdings during escalating trade tensions as an alternative safe haven.
4. Summary and Expectations
Protectionist policies and government statements underscore the risks of relying solely on traditional markets, enhancing the appeal of cryptocurrencies as a hedging tool, but rising volatility calls for caution. Monitoring developments in U.S. trade policy and plans to integrate Bitcoin into reserve methodology remains essential for assessing future trading opportunities.