As economic uncertainty rises, Bitcoin's value has dipped below $100,000 for the third day in a row. This reflects fears of inflation due to a worsening trade war, impacting the cryptocurrency markets significantly.
The U.S. announced steep tariffs on imports from Mexico, Canada, and China. This move has heightened economic concerns, sending financial markets into turmoil and affecting Bitcoin's pricing dynamics.
With altcoins dropping more than Bitcoin, Ethereum experienced a 16% slump in a day. XRP and Cardano also saw big losses, highlighting the market's turbulent state during this trade conflict.
Canadian tariffs on U.S. goods could lead to higher prices, pushing up inflation. This may affect economic growth negatively, risking higher interest rates and impacting Bitcoin's appeal as a safe asset.
Some analysts see Bitcoin as a hedge against the ongoing economic instability. Despite the risks of its price volatility, its dominance reflects a search for stability amid market chaos brought by the trade war.
While some experts argue that the trade war may boost Bitcoin's value as a safe haven, others warn of the cryptocurrency's vulnerabilities to volatility and liquidity issues, painting a less optimistic picture.
Regulatory changes and institutional investments could influence Bitcoin's future. Investors and economists are watching closely as inflation rates and interest rates play out, affecting Bitcoin's potential as a secure investment.
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