US and China Axe Trade Barriers—Crypto Markets Surge on Global Liquidity Wave
Geopolitical shocker as economic giants slash tariffs—just as predicted by those ’crazy’ crypto permabulls.
Global trade volumes spike overnight while Bitcoin flirts with ATHs. Traders scramble to reposition as fiat liquidity pumps risk assets.
Wall Street analysts still scratching their heads about ’that blockchain thing’ as decentralized finance protocols quietly process record cross-border settlements.
Classic finance take: ’This time it’s different’ (spoiler: it never is).
The Impact of Reduced Tariffs
China’s decision to slash its tariffs from 125% to 10% marks a pause in the long-standing cycle of retaliatory tariffs. Major motivators behind this MOVE include global inflation putting pressure on profits and rising production costs within China’s domestic market. Additionally, this regulatory change provides a respite during a period when international brands are inclined to maintain cost advantages rather than relocate production facilities out of China.
The US administration’s move to control imports by reducing tariffs on Chinese products from 145% to 30% signifies an important step forward. This move aims to recalibrate trade relations and manage economic priorities amid evolving global economic landscapes.
The adjusted tariffs by both nations have the potential to restore balance within the global supply chain. Both countries’ actions, aligned with their respective economic and political priorities, may help eliminate uncertainties in the short term markets.
Ripple Effects in the Crypto Market
The announcement of the US-China trade agreement and the ensuing concrete steps revitalized the cryptocurrency market. Following the news of China’s tariff reductions, the largest cryptocurrency, Bitcoin (BTC)
$104,373, made a significant recovery, rising by 1.88% from $104,000 to $106,000.
The altcoin leader, ethereum (ETH)
$2,517, surged by 2.86% in the last 24 hours to reach $2,568. Other altcoins also experienced significant upward trends, contributing to the overall growth in the crypto market.
Furthermore, the total market capitalization of cryptocurrencies saw a 2.13% increase, reaching a peak of $3.40 trillion. Experts predict that the positive news FLOW will sustain the upward momentum in cryptocurrencies.
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