The Impact of Tariff Policies on the Market and Cryptocurrency Prospects
1. Tariff Policies and Market Reactions
– Past Cases of Tariff Wars
Despite the intense trade war between the United States and China that lasted for about two years from mid-2018, prices remained relatively stable, and the NASDAQ index maintained an upward trend in the long term despite short-term fluctuations.
Looking at these past cases, it is believed that tariff wars may cause short-term shocks to the market, but they do not have a sustained negative impact in the long term.
– Impact of Current Tariff Policies
It is true that the ongoing U.S. tariff policies in the current global economy increase uncertainty, but the prevailing view is that this will have only a short-term impact rather than a major blow to the market in the long term.
In particular, the cryptocurrency market may also be affected by this, but based on past cases, there is a high possibility that it will be another investment opportunity rather than a continuous decline.
2. Impact on the Cryptocurrency Market
– Tariff Policies and Bitcoin
In the past, tariff policy issues had a direct impact on the stock market, but cryptocurrencies, including Bitcoin, have attracted attention as a hedge asset (alternative to safe assets) when global economic uncertainty increased.
Therefore, this change in tariff policy may temporarily shake the cryptocurrency market, but ultimately, it is likely to have a positive impact.
– Changes in Investors' Perspectives
Cryptocurrencies are increasingly establishing themselves as an alternative to the existing financial system and tend to react differently from traditional financial markets.
In other words, when the stock market is shaken by tariff issues, cryptocurrencies may attract attention as an alternative investment destination.
3. Conclusion: Long-Term Market Outlook
– Short-Term Volatility is Inevitable
Looking at past cases, it is a common trend for temporary volatility to occur in the financial market as a whole after the announcement of tariff policies.
However, in the long term, the market often quickly digests these issues and continues its original upward trend.
– Possibilities of the Cryptocurrency Market
The cryptocurrency market shows a differentiated trend from the existing financial market, and the long-term impact of tariff policies on cryptocurrencies is likely to be limited.
Rather, there is a possibility that it will receive more attention as an alternative investment asset when economic uncertainty increases.
During the tariff war between the U.S. and China in the past, the market experienced short-term shocks, but showed a stable recovery in the long term.
Although there is uncertainty due to the current tariff policies, the possibility of a sustained negative impact on the cryptocurrency market, including Bitcoin, is low.
Rather, if the volatility of the stock market increases, the demand for cryptocurrencies as a hedge asset may increase.
As a result, while being cautious about short-term market volatility, the prevailing view is that a positive trend will be maintained in the long term.
[More…]
- "Bitcoin and the Global Economic Crisis" → https://nextgeninsight.net/?s=%EB%B9%84%ED%8A%B8%EC%BD%94%EC%9D%B8
- "Cryptocurrency Market Outlook and Key Issues" → https://nextgeninsight.net/?s=%EC%95%94%ED%98%B8%ED%99%94%ED%8F%90
*YouTube Source: [Jun’s economy lab]
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