In the latest Binance report on the impact of Donald Trump’s proposed tariffs on the cryptocurrency market, it is stated that high-risk investments have suffered the most damage, while tokenized Real World Assets (RWA) and exchange-related tokens have experienced the least impact. According to the report, Bitcoin’s perceptional risk has increased due to its recent correlation with the stock market, and only 3% of investors have introduced it as their preferred asset in case of a trade war. These findings may weaken the common view of Bitcoin as a hedge against inflation. Trump’s proposed tariffs, considered the strictest tariffs in the US since the 1930s, have raised concerns about global trade wars and inflationary recession. Following these developments, Ethereum has plummeted to March 2023 price levels, while the OM token from the MANTRA project has seen growth after announcing the creation of a large RWA fund. Tokens related to high-risk sectors such as artificial intelligence and meme-coins have dropped by over 50%, whereas RWA tokens have only decreased by 16% and exchange tokens by 18%. Meanwhile, reports indicate that the US stock market has lost over $5 trillion in just two days and in the past 44 trading days, this loss has exceeded $11 trillion (equivalent to 38% of the US gross domestic product). Additionally, JP Morgan has increased the likelihood of a recession to 60%. Binance concludes its report by emphasizing that in these turbulent conditions, blockchain projects with real-world applications and long-term prospects are the safest investment options.
