The economic confrontation between the United States and China takes on a new dimension. Indeed, far from being limited to traditional exchanges, this trade war now affects the market of cryptos. Thus, between the announcement of Donald Trump with regard to the creation of a national strategic reserve of Cryptos and the Chinese response to American economic sanctions, investors attend market movements of rare intensity. The question arises now: is this instability fleeting or should we expect a lasting impact?
Cryptos under tension after Trump's announcement
Donald Trump surprised the financial world with the revelation of his Cryptos national reserve project. Bitcoin, Ethereum, XRP, Solana and Cardano were placed at the heart of this new strategy, which marked an unprecedented turn in American economic policy. Thus, the stated objective is to strengthen the digital sovereignty of the United States in a context of increased rivalry with China and to anticipate an evolution of financial exchanges to cryptos.
The announcement immediately made the markets jump. This is why Bitcoin reached $ 95,000 before stabilizing around 89,870 dollars. Also, Cardano and XRP have also experienced a significant increase, in a generalized upward dynamic. However, the euphoria was short -lived. The American commercial offensive against China quickly caused a response, which suddenly reversed the trend and dropped the cryptos in a few hours.
A trade war that threatens financial balance
On March 4, Washington decided to accentuate economic pressure by reporting its customs duties on several fronts. Also, Canadian and Mexican imports are now taxed up to 25 %, while Chinese products are increasing taxes, going from 10 to 20 %. Officially, this measure aims to fight against fentanyl traffic, but Beijing sees it as a hostile maneuver and immediately reacted.
In response, China has established a 15 % tax on several American agricultural productswhich include wheat, corn, cotton and chicken. In addition, the Chinese government has seized the World Trade Organization. He thus denounces an attack on the rules of international trade. This showdown caused a shock wave on the financial markets, which led to a brutal fall in the stock market indices. The S&P 500 lost 3 %, while the Nasdaq fell 2.64 %.
These cryptos followed this downward trend with a marked correction. Bitcoin dropped 8.25 %, Ethereum fell 10.62 %, Cardano lost 15.9 %and Solana recorded a drop of 14.6 %. This episode illustrates how vulnerable the cryptos market remains vulnerable to geopolitical tensions and macroeconomic decisions.
Why are cryptos affected by this crisis?
Long perceived as an asset independent of traditional markets, Bitcoin is today strongly influenced by the dynamics of institutional investors. This entry into scene of the great investment funds made the sector more sensitive to global economic fluctuations. When a crisis breaks out, these actors reduce their exposure to risky assets, which leads to massive sales of cryptos.
However, monetary instability linked to the trade war also encourages investors to turn to traditional refuge values, such as gold, to the detriment of bitcoin and altcoins. In addition, Trump's initiative triggers questions about the future of crypto market regulation. The growing institutionalization of cryptos could strengthen the control of the American authorities, to the detriment of independent actors and private investors.
If this crisis generates an immediate correction, some analysts believe that it could ultimately create purchasing opportunities. Arthur Hayes, a former CEO of Bitmex, considers that this drop could be a strategic lever for Donald Trump in order to force the Federal Reserve to adopt a more flexible monetary policy. According to him, a fall in bitcoin around $ 70,000 would not be a threat, but an accumulation opportunity before a new bullish cycle. The coming months will be decisive for the cryptos market. Such uncertainty around American economic policy and the Chinese response will continue to influence trends. It remains to be seen whether the cryptos will regain their status of refuge in the face of these turbulence, or if they will remain trapped in geopolitical and economic tensions.
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