After Trump’s order to create a strategic Bitcoin reserve last month, the government’s Bitcoin asset value decreased by about 13 %. The basis of this situation lies the effects of rapidly climbing trade wars and new tariff policies implemented.
Tariff policy
Trump threatened an additional 50 %tariff against China after applying a 10 %tariff for imports to the US last weekend. Today, the ratio of the additional tax has increased to 104 %. Of course, these applications affect all markets and crypto currencies are not isolated. The US Bitcoin reserve is not an exception, but the decline of the tariffs is rapidly melting the reserve.
While creating a strategic Bitcoin reserve, federal institutions ordered to report the amount of Bitcoin and other crypto assets. The report reported that it is not obligatory to explain assets to the public.
Crypto market reactions
Following the tariff statements, prices declined in crypto asset markets. The total crypto market value has decreased by about 15 %since the last announcement. Although investors argue that crypto assets can partially act independently from traditional markets, this did not last long.
The value of the US government’s crypto asset portfolio is around $ 15.9 billion. Bitcoin represents about $ 15.6 billion of this portfolio. Most of the assets were obtained by the seizure of crypto assets in the past.
The effects of the tariff applied were not limited to crypto assets, but also affected global stock markets. For example, the 20 %decrease in the S&P 500 index points to the wide -scale market effects of tariffs.
Assets of the World Liberty Financial project associated with the Trump family also had a coup. The value of crypto assets of this project decreased by approximately 49 %compared to the period they were obtained.
Developments experienced; Economic fluctuations, trade wars and implemented tariff policies affect the common dynamics of digital assets and traditional markets. These developments, which lead investors to develop alternative strategies against market risks, offer important clues in terms of future economic mobility.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
