The Impact of Donald Trump's tariffs on the crypto world.

The tariffs announced by Trump, which include a general 10% on all imports and higher rates on key trading partners like 20% on the EU or an additional 34% on China, aim to reduce the U.S. trade deficit and promote self-sufficiency. However, the WTO estimates a contraction of 1% in global trade, with immediate effects such as declines in stock markets; Wall Street lost up to 4.84% in the S&P 500 and higher inflation. This creates uncertainty, negatively affecting short-term economic growth.
Short-term in cryptocurrencies: Volatility has increased, with significant drops. ( Bitcoin fell by 4-5%, Ethereum by up to 6-12%. ) Investors, faced with risk aversion, tend to sell speculative assets like cryptos, which show correlation with traditional markets in times of crisis. However, some see Bitcoin as a potential safe haven if inflation persists.
Long-term in cryptocurrencies: Tariffs could weaken the dollar's dominance if other countries seek alternatives, benefiting Bitcoin as a store of value. Trump's bet on a "strategic reserve" of cryptocurrencies (Bitcoin, Ethereum, XRP, etc.) and his pro-crypto speech suggest a positive regulatory push, which could attract institutional investment and consolidate its adoption.
3 Tips for the Outlook:
1. Diversify: Don't concentrate everything in cryptocurrencies; combine with safe-haven assets like gold to mitigate short-term volatility.
2. Monitor policies: Keep a close eye on Trump's announcements and global responses, as they will influence crypto prices.
3. Long-term bet: If you believe in the potential of Bitcoin as an alternative to the dollar, maintain strategic positions but prepare for fluctuations.
Dear investors, we must remain calm. It is very likely that we will continue to see movements in the markets and in crypto. Tomorrow the markets will open, and we are coming off a weekend where many have been analyzing the market, and there will be sales as well as purchases.
As always, keep a cool head and if you have already done your homework, dear investor, it is just a matter of time and patience before you reap the rewards of your plan and strategy. 💪🙂 📈🧠