Trump’s tariff provokes shattering

Group qualifiers, shattering coding, panic everywhere – but one of the leading analysts says this may be the biggest chance of Crypto so far. Can US President Donald Trump’s tariff feed the upcoming Bitcoin step?

Editor’s note: This article was written before the United States government reached a preliminary agreement with the Mexico government, at least a comment on implementation tariff For one month. You can read about this development here.

The encryption markets took a sharp slowdown the next The latest wave of economic uncertainty resulting from the new US definitions.

As of February 1, the United States imposed a 25 % tariff on imports from Canada and Mexico and 10 % of the customs tariffs on Chinese goods, the escalation of trade tensions and add pressure to global markets.

In the aftermath of this position, Bitcoin (BTCIt decreased to 91200 dollars before recovering to 96,000 dollars, a 2.5 % decrease in the last 24 hours is still from February 3. Meanwhile, ethereum (Eth(15 % decreased, decreased to 2600 dollars.

It followed the total encryption market, as it lost $ 300 billion in only 24 hours, up to the total maximum market to $ 3.25 trillion, which is its lowest level since mid -November, according to Coingecko.

He heavy derivatives market LiquidationWith $ 2.33 billion in erasing centers, according to Coinglass. The long traders suffered more, lost $ 1.91 billion, while short positions witnessed $ 417 million in the liquidation. ethereum Lead Losses with $ 600 million, followed by Bitcoin at 400 million dollars.

Definitions can push inflation, disrupt supply chains, and weaken economic growth – factors that affect market morale. The main question now is the depth of this correction and whether the market is preparing for prolonged fluctuations. Let’s discover.

Definitions as a strategic lever

Continuous transformations in the American economic strategy, especially with regard to definitions, extend beyond commercial policy and job as part of the broader monetary approach.

According to Jeff Park, the head of the Alpha Strategies at BitWise, this strategy is connected to the Triffin dilemma – a issue related to the role of the US dollar as a backup currency in the world.

“The United States wants to continue borrowing cheaply, but at the same time, you need to weaken the trade deficit of the dollar and restore balance. This is the paradox, and the customs tariff is placed as an indirect tool to force the movement in this direction.”

Since global trade depends on the dollar, foreign governments and central banks must keep large reserves. This dynamic keeps the excessive value structurally, which makes us make less competitive while allowing the government to borrow on favorable conditions.

To maintain this system, the United States historically runs a continuous commercial deficit, as it provides the world effectively with dollars at the expense of its industrial base.

Now, Park notes that the United States is looking for ways to counter the negative effects of the dollar in the Mobilization without giving up the borrowing feature. Definitions are used in this context – not as a traditional protection measure, but as a tool to influence dollar reserves in foreign governments and US Treasury properties.

“If it succeeds, the customs tariff can calm down for a modern version of” Plaza Accord “of 1985,” Park says. “But instead of direct negotiations, the United States provides asymmetric economic pressure.”

The aim of this is to encourage commercial partners to shift from short -term cabinet holdings to long -term debts, which may help in stabilizing the American debt market while facilitating the decrease in the dollar control.

However, this strategy carries risks. Definitions increase costs, which can contribute to inflation and prolong the central banks to control policy in ways that can create instability in the financial markets, including encryption.

If inflation rises very quickly, the Federal Reserve and other central banks may respond to measures that increase fluctuations through risk origins.

“People assume that the customs tariff revolves around trade,” Park added. “But if it declines, it is part of a wider cash strategy – if it is implemented properly, it can reshape the entire global financial balance.”

The role of Bitcoin in the era of monetary reorganization

If the United States weakened the dollar while maintaining low borrowing costs, financial conditions may become more suitable for risk assets such as bitcoin. Park explains:

“Trump’s primary goal is to reduce the treasury return for 10 years, and the reason is simple-his financial interests depend on him, especially in real estate. He pushed him to Powell to reduce short-term rates, then realize that he was not working, the catalyst. Never reduce the direct incentives of a person Pay profit transparently – the alignment with them can be strategically.

Initially, the administration pressed the federal reserve to reduce prices. When this approach did not result in the desired result, the definitions became the next tool.

Since definitions increase the costs and slow economic growth in trade -based economies, foreign governments are likely to respond to cash dilution and financial motivation, whose currencies can weaken for the dollar. This, in turn, will lead to the export of inflation to the United States while increasing global liquidity.

Historically, investors who seek to protect against inflation and the currency process have turned into gold and government bonds and real estate.

Today, Bitcoin offers an additional option – a liquid store, a central value that works outside government control. Park believes that both American and foreign investors will resort to Bitcoin, despite various reasons.

“In the United States, Bitcoin may act as a hedge against dollar weakness and inflation, while in foreign markets, it can provide an escape from reducing the value of the local currency,” says Park.

Park says. “In a world with the weaker interest rates of the dollar and the decline in the United States, the origins of risk in the United States may rise beyond expectations. The assets you possess, therefore, are Bitcoin.”

If Park’s evaluation continues, the factors that initially contributed to the decline in Bitcoin – flyer tools, cash uncertainty, and inflation fears – in the end play a role in leading its next wave of adoption.

Experts’ views: How can customs tariffs reconfigure the encryption market

To understand the broader effects of American definitions on encryption, Crypto.News communicate with industry experts who presented a set of ideas about market reactions, structural shifts, and the advanced role of Bitcoin.

While some believe that the sale is a temporary reaction, others argue that it indicates deeper economic changes that can reshape the role of encryption in global financing.

Selling panic or basic transformation?

Kevin Ho, co -founder of Bitlayer Labs, believes that the last market decrease is primarily an exaggerated reaction, but warns that his long -term impact depends on the broader economic conditions.

In the short term, this looks like an exaggerated reaction by the market. But in the long run, the effect depends on how the encryption market interacts with the global economic environment. “

He pointed out that if commercial tensions escalate to stagnation, institutions may reduce high -risk assets such as Crypto, but Bitcoin can also attract more safe demand.

“If the trade war leads to a global recession, institutions may reduce exposure to encryption and technology shares, which leads to continuous liquidity pressure. But if inflation increases or tightening capital controls, encryption may attract safe capital flows, especially Stablecoins and some Defi assets.”

Min Xue, the investment partner in Foresight Ventures, also sees that the sale is an emotional response rather than a sign of a long decrease.

“The market is generally moved along with the prevailing financial sectors. The last decrease in bitcoin to $ 91,000, at best, the knee reaction. The last bloodbath does not represent this gateway to the encryption winter that has been eliminated a lot.”

While the short -term volatility dominates, experts argue that definitions can lead to structural transformations in the encryption markets, from mining dynamics to liquidity flows. Daria Morgan, head of research at Changelly, believes that Trump’s economic policies may push more investors towards decentralized assets.

As a technique that goes beyond government control, Crypto can become a hedge against economic and political instability. Ironically, his adoption may accelerate not because of direct support, but as a shelter of policy -based fluctuations. “

She added that Bitcoin’s increasing dominance indicates that investors already see it as hedging at unconfirmed times.

“Today’s increase in bitcoin dominates 61 % indicates that investors inside the area are already looking at BTC as a relatively stable origin while uncertainty.”

The costs of mining and bitcoin stability in the long term

The high definitions of mining devices can also affect Bitcoin’s long -term evaluation and stability.

Rahul Suri, the founding partner of the Ghaf Capital, warns that high operational costs may pay smaller miners from the market, affecting network security and transactions.

“If the definitions remain in place and miners continue to face the growing operating expenses, we may have always seen the market morale. Increased mining costs can lead to high transactions fees, innovation disability, and long fueling trends.”

However, some believe that the Bitcoin mining network will adapt. Alexis Sirkia, President of Need Network, notes that miners on a large scale historically managed to move or adapt to the new economic conditions.

“Although any additional devices requirements may emphasize smaller miners, larger institutional miners can adapt and maintain profitability.”

He also pointed out that the high costs may lead to high tie prices for Bitcoin, which determines new prices.

“With the increase in mining costs, a larger bond tie for bitcoin comes, which can determine the highest floors for BTC.”

Change investment trends and market relations across the markets

Experts also created how definitions transferred the investor’s behavior and influence the connections across the market.

Georgii Verbskii, founder of Tymio, believes that sales reflect the wider macroeconomic concerns instead of tariff fears.

“Trump’s attempts to break the old world order cause fear and fluctuations not only in encryption but through global financial markets. In risk mode, BTC, which is still seen as a speculative asset, will continue to decline.”

However, some argue that commercial tensions can push investors to more bitcoin as a hedge against uncertainty. Xue sees the customs tariff quickly to adopt Bitcoin, especially if the traditional financial markets are weakening.

“If the definitions are weakened by traditional markets and pushing investors towards alternative assets, bitcoin adoption will increase, which increases demand for mining activities.”

Kevin also sees a long -term transformation of capital flows, especially towards decentralized financing.

“If some countries have tightened Forex controls or impose tougher capital restrictions, some investors may turn into Defi protocols as an alternative to capital management, which leads to increased growth in financial services in the chain.”

Sirkia believes that the customs tariff will increase the integration of encryption into global financing, making it more responsive to macroeconomic events.

“We see an increasing rapprochement between traditional financial markets and encryption, which indicates that total economy events such as customs tariffs will affect digital assets with greater instant than they were in previous years.”

What do you expect after that?

The effect of definitions on encryption remains to be revealed, but there are many major trends.

The fluctuation is likely to be in the short term, with Bitcoin interrogation with the broader uncertainty in the market. However, if inflation rises or tightens global liquidity, the encryption may gain traction as a hedge against economic instability.

While long-term expectations are still strong, excessive merchants and those who bet on instant counterattacks are betrayed with caution-it is still possible for economic shocks to reshape the stadium.

Trade wisely and never invests more than you can lose.