As the ceasefire negotiations between Russia and Ukraine draw to a close, a significant trade conflict is casting shadows over global markets. The recent actions taken by Trump have created ripples in inflation and risk markets, particularly affecting cryptocurrencies. This situation raises crucial questions about Bitcoin‘s price predictions in the current climate.
What Triggers the Trade War?
The onset of global tariffs on steel and aluminum has triggered retaliatory actions from the EU and Canada. Experts voice concerns that these trade tensions could adversely impact economic growth. Although recent inflation statistics provided a brief glimmer of hope, they have not met expectations, leading to fears of increased inflation in the coming months due to the tariffs.
Will Tariffs Impact the Economy?
Yes, the tariffs implemented have already begun to raise steel prices globally, resulting in increased costs for businesses reliant on U.S. steel. This situation not only restricts the export capabilities of the U.S. economy but could also lead to a contraction, putting it at risk of suffering more than other nations.
- February 4: 10% tariff on all imports from China.
- March 4: 25% tariff on all imports from Mexico.
- 25% tariff on most items from Canada.
- Additional tariffs have been announced on agricultural products and foreign cars.
With the looming threat of a global economic slowdown reminiscent of the 2008 crisis, risk markets are feeling the impact. Severe sell-offs in cryptocurrencies are evident as market sentiment shifts. Jelle highlights that Bitcoin must reclaim $90,000 soon to avoid further weakness, while analysts like Rager indicate that a deeper dip near $69,000 is possible.
Current market conditions signal potential challenges for cryptocurrency holders as new tariffs and their economic repercussions take center stage. Investors face uncertainty ahead, with more volatility likely in the market.
