The Bitcoin that had managed to exceed US $ 100,000 over the weekend, goes back to minimums of almost a month. How can the expectation of inflation rise in the US impact on cryptocurrencies.
The cryptocurrencies yield strongly this Monday, February 3 and Bitcoin reaches minimums of almost a month, on a day in which the risk assets are in red, after the tariffs imposed by Donald Trump.
What Donald Trump da, Donald Trump takes it away. The Bitcoin (BTC), which on Saturday exceeded US $ 100,000, erases the bearish trend and heads back towards that key value after climbing at the last hour to US $ 98,400 according to Binance and after himto the decision of the president of the United States to fulfill his promise to impose tariffs on Canada, Mexico and China.
The rest of the cryptocurrency market faces even more pronounced falls led by Cardano with a 19.5%decrease, followed by the strong Avalanche falls (-16.4%), Shiba Inu (-15.2%) and Toncoin ( -13.9%). Ethereum deserves a separate point whose collapse is 16.09% and falls au $ 2,600, reaching minimums in four months.
World Liberty Financial (WLFI), the crypto project backed by the Trump family, also had a significant impact, with a 20% drop in its investments in January cryptocurrencies, according to Spotonchain data. In the last hours, the collapse exceeds 9%.
The fear of the commercial war that impacts cryptocurrencies
The fear of a rebound in inflation due to these tariff measures is affecting both cryptocurrencies and other risk assets. The Federal Reserve (FED) had paused its cycle of cuts in interest rates, hoping to evaluate the impact of Trump policies on inflation and economic growth. Some analysts do not rule out a new increase in rates, which could further harm cryptoactives.
Ryan LeeChief analyst Bitgethe pointed out that: “The fears of a global commercial war trigger a strong decrease in cryptocurrency markets: Bitcoin and Ethereum react to the climbing of tariff tensions”
“This remarkable decrease in the cryptocurrency market is mainly driven by the growing concerns about a possible global commercial war, after the announcement of President Donald Trump. The retaliation measures promised by Canada, Mexico and China have further raised the anxiety of the Investors, causing a distance from the most risky assets, including cryptocurrencies, “Lee slipped.
And he adds: “Although Bitcoin historically has been considered a refuge against the volatility of traditional markets, their recent behavior highlights a growing sensitivity to global economic events. The current reaction shows how geopolitical tensions and political decisions are influencing more and more in cryptocurrency market dynamics. “
And as these events continue to develop, investors must remain attentive, since the geopolitical and macroeconomic changes are probably affect the valuations of short -term cryptocurrencies.
Source: Ambito
