Worldwide financial markets have entered a risk-off phase as soon as U.S. President Trump’s latest tariffs on China have influenced the Chinese Yuan and the US dollar. Hence, Trump’s announcement of a staggering 104% tariff on imports from China has negatively impacted the crypto markets with a prevailing bearish momentum. This move has particularly pushed the Yuan to record price lows, while the US dollar has lost value to Franc and Yen.
Trump’s Huge Tariffs on China Raise Crypto Volatility and Downturn
The massive 104% tariffs on Chinese goods are reportedly included in Trump’s economic agenda going by “America First Round Two.” This move signifies surging trade tensions between the U.S. and China and has shocked the equity markets, triggering a worldwide rush for relatively safer assets. In the case of crypto, these developments led to a wave of significant volatility.
Particularly, Bitcoin ($BTC) slumped to a daily price low of up to $76.508 and Ethereum ($ETH) witnessed a drop to $1.454. The exclusive tariff proposal of Trump is already bringing a broader shift in worldwide capital flows. In this respect, despite the US dollar’s triumph over the Yuan, it has slumped against Franc and Yen. This indicates that the traders are shifting from the Yuan and USD to the Yen as well as Franc as the safer assets.
Potential Escalation in Trade War Could Result in Deep Recession for Crypto Assets
According to the new market statistics, if this trade war escalates, there is a possibility for the top crypto assets to see deep downturns. At the moment, the pressure is rising across the crypto market while Bitcoin ($BTC), Ethereum ($ETH), and the other crypto assets struggling to make a recovery. In the meantime, the market onlookers keep watching for the potential signs of a decrease in the growing trade tensions.
