Following the escalation of the trade war between the US and China, global financial markets have been shaken, impacting the digital currency market as well. In the latest move, China increased tariffs on US goods by 125%. This decision was a direct response to the recent US government’s increase of tariffs on Chinese goods by 145%. The intensified trade tensions have also affected the cryptocurrency market. The price of Bitcoin (BTC) dropped below $82,000 initially, while Ethereum also decreased by over 2% to $1,550. Additionally, US stock market indices have taken a downward trend. In such an environment, investors are moving away from high-risk assets towards safe havens like gold, cash, and foreign currencies. Analysts believe that sudden decisions by US President Trump have severely destabilized global markets. Data from SoSoValue shows that Bitcoin exchange-traded funds (ETFs) in the US have experienced capital outflows for six consecutive days, with a net outflow of $150 million registered on Friday alone. The largest capital outflow was from the Fidelity fund with $74.6 million, followed by Grayscale with $44.6 million. As the next Federal Reserve meeting approaches on May 6, speculations point towards a possible interest rate cut. Market pricing indicates a 38% chance of this cut, which if implemented, could play a crucial role in shaping future markets. Visit the digital currency price page to track live prices of all tokens and cryptocurrencies.
