Trade wars may have indirect and short-term negative effects on cryptocurrency markets by creating global economic uncertainty. Risk aversion, increased volatility, and increased correlation in some periods support these effects.
However, it is difficult to define this situation as a continuous and inevitable "vicious cycle". The internal dynamics of the crypto market, its long-term potential, and the different motivations of investors can offset or even reverse the negative effects of trade wars. Therefore, when evaluating the impact of trade wars on cryptocurrencies, the general situation of the market, other factors, and the long-term perspective of investors should also be taken into account.#Crypto Market Rebounds #Upcoming CPI & PPI Data Releases #BTC
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Trade wars may have indirect and short-term negative effects on cryptocurrency markets by creating global economic uncertainty. Risk aversion, increased volatility, and increased correlation in some periods support these effects.
However, it is difficult to define this situation as a continuous and inevitable "vicious cycle". The internal dynamics of the crypto market, its long-term potential, and the different motivations of investors can offset or even reverse the negative effects of trade wars.
Therefore, when evaluating the impact of trade wars on cryptocurrencies, the general situation of the market, other factors, and the long-term perspective of investors should also be taken into account.#Crypto Market Rebounds #Upcoming CPI & PPI Data Releases
#BTC