The Bitcoin exceeded US $ 100,000 after reaching the US $ 91,000, minimum of almost a month. How can the expectation of inflation rise in the US impact on cryptocurrencies.
The Cryptocurrencies are strongly reversed by the falls they recorded at the beginning of this Monday, February 3 And they rebound strongly after the presidents of the United States, Donald Trump, and Mexico, Claudia Sheinbaum, agreed to pause for a month the tariffs announced the weekend by Washington to the Latin American country.
In this way, Bitcoin bounced 3.2% and exceeded US $ 100,000 after touching a minimum of US $ 91,672. On Monday afternoon, the most popular cryptocurrency in the market traded US $ s101.730, According to Binance.
Earlier, digital assets had collapsed up to 30% on Sunday night and Monday morning after Decision of the president of the United States to impose tariffs on Canada, Mexico and China.
The fear of the commercial war
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
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