“As the Trump Administration Sets Out Tariff Policy on “Liberation Day” Wednesday, Many are PESIMICIC ABOUT The Economy in General and Crypto Prices in Particular. But there are strong reasons not to be, say Analysts.”, – WRITE: www.coindesk.com
Crypto prices have suffered from being increasing Correlated with Traditional Assets Like Stocks and Bonds, WHICH HAVE BEEN HIT by By Macroconomic Uncerty. Tariffs – Surcharges The US Places on Imports from Other Countries – Have Wall Street Worred About A Global Recession. Crypto Investors Have Been Steering Clear of Crypto Assets, WHICH Are Seen As Relativly Risky.
“This is All About Markets’ ‘Risk APPETITE’ WHICH Continues to Deteriorate, and For the Time Being Drives Said Marc Ostwald, Chief Economist & Global Strategist at Adm Investor Services International.
“[That’s] in no small part driven by Central Bank FX Reserve Managers, Who Are Se easing to Reduce USD Exposure, WHICH HAS LONG BEEN A SOURCE OF CONCERN TO THEM. ”
As the Global Financial and Trade System Becomes More Fragmented, Investors Are Sectioning Alternatives to Riskier Assets, Including Dollars. For Now, that Means Turning to Gold, WHICH IS Up 18% Year-To-Date.
But that Could Change, SAID OMID MALEKAN, An Adjunct Professor at Columbia Business School and Author of “The Story of the Blockchain: A Beginner’s Guide to the Technology Bitcoin Could be the New Gold Soon Enough.
“I THINK The ENTIRE [future] is uncertain and in some winds unknowable, because there are many Crosscurrents and bot crypto and tariffs are new. Some people argue that crypto is just a risk-on tech asset and wound sell Off Due to Tariffs. Butcoin Has Founding in Some Circles as ‘Digital Gold’ and the Physical Variety is Soaring on the Tariff News. SO WHICH WILL IT BE? ”
In Other Words, Economic Uncertainty Could Lead Investors to Seek Out Bitcoin Just as they have soung Out Gold in Recent Months.
Another Note of Positivity: The Impact of Tariffs on Crypto Could Be “Priced In” and the Worst Might Be Over Already, Said Zach Pandl, Head of Research at City.
President Trump is Due to AnnoUnce US Tariffs on Wednesday, April 2, At 4 PM et -Hat’s Known As “Liberation Day.” Accorness to Reports, He’ll Lay Out “Reciprocal Tariffs” Against 15 Countries that have Levied Tariffs Against The US, Incling Cina, Canada and Mexico.
PANDL ESTIMATES TARIFFS HAVE SO FAR TKEN 2% OFF ECONOMIC GROWTH THIS YEAR. But Liberation Day Might Actual Stop The Worst of the Pain Felt in Financial Markets. “If we see and Announcement [on Wednesday] that is tough But Prased, and Focused on the 15 Countries they seem to be taargeting, my expert is that markets will raly on that News, ”Pandl Told Coindesk.
“Potentilly ons we get through this AnnounCement, Crypto Markets Can Focus Back on the Fundamentals Which Are Very Positive.”
Pandl Said AnnounCements Like Circle’s IPO Wuldnn’ Be HapPening If Institutions Didn’T HAVE A HIVH DEGREE OF CONFIDENCE IN THE DIGITAL Assets Sector and The Policies AROUND IT.
Moreover, Pandl, A Former Macro-Economist at Goldman Sachs, Believes that Tariffs Will Increase The Appetite for Currencies that aren’t dollars.
“I Think Tariffs Will Weaken the Dominant Role of the Dollar and Create Space for Competitors Including Bitcoin. The Longer Term for Bitcoin As A Global Monetary Asset. ”
Pendl Still Believes that Bitcoin Will Hit New All-Time Highs This Year, Despite Current Pessimism Armund Prices. “I wouldn’T have quit my wall street job if i didn’t think bitcoin will be the winner in the Long Term,“ He Said.
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