After losing more than 17% of its total value, the cryptocurrency market was quickly recovered, although remaining below the previous values and showing several signs of instability. Bitcoin fell from 102 thousand to 92 thousand dollars, before rising again and settled at 98 thousand. For its part, Ethereum collapsed 30%, from $ 3,400 to $ 2,400 before placing at $ 2,700.
This is the so -called “rebound” that occurs after sudden collapse and that is linked to the choice of some investors to take advantage of prices to buy assets “at the price of bargain”. An intelligent movement? There is no certainty about future evolution, it is mere speculation.
And this is precisely the issue: how is it possible that the cryptocurren “The world, to create a federal strategic reserve in Bitcoin, which has replaced the former president of the Bag and Securities Commission (SEC), putting in its place a well -known supporter as Paul Atkins.
Trump’s decisions penalize the crypto
There is a lot of talk about ‘Trump Bump‘, the impulse that Trump has given to cryptodives, however, we are dealing with the’Trump Crash‘, the collapse that is part of a speculative dynamic but apparently caused by the tariffs imposed by Trump against Mexico and Canada; and then suspended at the last minute. And of course, the commercial war with China, while the EU also dealt with similar measures.
The impact of tariffs with the collapse of cryptocurrency does not strictly fall on affected nations, but on US companies that matter to these countries, which in turn move costs to consumers through higher prices. One of the reasons why the percentage of tariffs are determined is to favor products in front of foreigners, but the collateral effect is that buyers spend less due to high pricesand more importantly, they cause an increase in inflation. Normally, high inflation, or the fear of it, makes cryptodivises fall, while they rise when inflation is low.
When inflation increases, central banks, such as the Federal Reserve in the US or the European Central Bank, tend to raise interest rates to contain it. Higher interest rates make the most risky investments, favoring safe assets, such as state or dollar bonds. “It is clear that Bitcoins are not yet perceived as an active primary refuge. It has often talk that bitcoins would become a ‘digital gold’ form, but investors prefer to bet on safer assets such as the US dollar or The state bonds.
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