Does Trump’s tariff affect the cryptocurrency as expected? Yazan Santim

Since US President Donald Trump took over the White House, the encryption market has mostly impaired, as Bitcoin’s reaction (BTC) was negatively over most of the political changes. The latest change in politics-confirming the mutual definitions on global deals-led to a reaction at the market level, where the participants ask whether this effect is required.

Santiment analysis platform open The market does not interact with the expectation of options. Since Trump confirmed the definitions, BTC has lost at least $ 5,000, and most Altcoins in red.

Possible effects of definitions

Trump’s tariff aims to encourage American citizens to buy local goods instead of international products. Some advantages include enhancing production and purchase within the United States, increasing additional income that can finance local projects and reduce the budget deficit.

However, like any change in other government policy, the definitions have some negatives. Consumers will witness an increase in prices because imported goods will become more expensive, economic slowdown due to low global trade, and a possible trade war with foreign countries’ revenge for their definitions.

Since the customs tariff leads to uncertainty at the global economic level, traditional financial markets are also affected. Global stocks flow, and decline in futures indexes in the United States. Although the declaration of the specified tariff was shortly after the closure of stock markets on April 2 to avoid a tremendous negative reaction, Santime believed that Wall Street will still face a large sale when the regular trading session begins.

Do traditional investors turn into encryption?

Many encryption analysts have argued that uncertainty in traditional financial markets can lead investors to transfer their money from stocks and bonds to cryptocurrencies as an alternative asset. However, the main reaction to investors so far has been capital flows to more traditional safe havens such as gold and silver, which are not affected by economic conditions.

While BTC struggled in the first quarter due to the macroeconomic conditions, gold continued to hit new levels at all (ATHS). After increasing 20 % of 20 %, the precious metal is currently trading by about $ 3,190. In the same time frame, BTC was mostly associated with the S&P 500, and some temporary cases are recorded. Altcoins, on the other hand, is worse.

While the encryption market continues to interact negatively, some analysts believe that the customs tariff will eventually lead to a rise of ascension in the coming months as the countries were in and reduced definitions against the United States because they insist that this is “short -term pain, a long -term gain”, others believe that encryption and stock markets are on a long journey.