#TrumpTariffs If we talk about monetary policies (such as interest rate cuts or hikes):

1. Interest rate cuts (expansionary):

Financial markets: Generally boost stock markets and risk assets because they reduce the cost of financing and improve future cash flows.

Cryptocurrencies: Tends to be positive, as the appetite for speculative assets grows when money is cheaper.

Risk: Can fuel asset bubbles if perceived as too aggressive.

2. Rate hikes or quantitative tightening:

Markets: Tend to become more volatile and bearish. Equities and speculative assets typically suffer.

Crypto: Highly sensitive. In restrictive environments, capital moves away from risk assets, such as Bitcoin or altcoins.