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The escalating tension in trade between the U.S and other nations initiated by Donald Trump’s tariff promises continues to affect the financial industry, including the digital currency market. The steady rally of Bitcoin is indeed snuffed out as Trump’s tariff announcement led to a decline in Bitcoin value for the second consecutive day. The negative news proved too significant for the digital asset to offset.
Promises of higher tariffs imposed on Chinese goods by President Trump result in economic uncertainty around the globe, affecting stock and cryptocurrency markets alike. High volatility in these markets subsequently leads to Bitcoin striving to hold at lower support levels, setting off alarms in the cryptocurrency trading sector. This undoubtedly suggests that traders are beginning to measure the possible impact on the Bitcoin market due to the trade war escalation.
Speculations indicate that investors may start treating Bitcoin as a ‘safe haven’ asset amid global economic uncertainty. However, the weakening cryptocurrency market may disapprove of this notion. Currency experts also believe that the tariff updates are not solely responsible for Bitcoin’s downfall. Other contributing factors could include technical dynamics and issues associated with Bitcoin mining, which have the potential to influence the Bitcoin market directly.
As the world awaits the next move in the Trump-led trade war, the potential impact on digital currencies like Bitcoin stays top of mind for investors and traders across the globe. While Trump’s tariff promises have snuffed out the Bitcoin rally for now, the future trajectory of Bitcoin remains unpredictable, subject to global economic fluctuations and further intensifications in the global trade war.
Source: CoinDesk
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