Bitcoin Rockets to $90K After Trump Delays Tariff to Protect the Big 3—But Is the Fentanyl Trade Fueling a Market Crash?

US President Donald Trump recently imposed duties on imported goods from Mexico, China, and Canada. The issue could directly affect the US Big 3 automakers. And thus, Trump has delayed the tariffs to stagnate the issue and find an alternate solution. Markets reacted to the temporary delay soaring high. Bitcoin skyrocketed to $90K! The question is, as Trump delays tariffs, what are the economic and market implications? How will the current US trade war impact the crypto market and investors? How is the Fentanyl trade affecting the crypto market, and what are its connections with the ongoing US Trade war? Let us explore and find answers! 

What is the Issue? How Will the Current US Trade War Impact the Crypto Market and Investors?

Trump’s primary concern is that these three countries, China, Canada, and Mexico, are not compliant with USMCA regulations. Also, with the Canadian Government, his tiff is around illicit drugs, especially Fentanyl. And thus, the President imposed the tariffs. However, these countries retaliated by increasing their tariffs on US products sent to their countries. The retaliation could directly affect the US Big 3 automakers, who depend on these countries for raw materials and spare parts. So, Trump has delayed the tariffs. He intends to stop the escalating issue temporarily. Markets reacted to the temporary delay soaring high. Bitcoin skyrocketed to $90K!

Trump Delays Tariffs: What Are the Crypto Market Implications?

The temporary tariff delay is in favor of the crypto market. How? The delays create economic uncertainty, compelling investors to choose alternative, more secure assets like Bitcoin. This shift among investors is a commonality often seen as a hedge against market instability. With the delay, the demand in the traditional markets will reduce, increasing the chances of alternate assets like crypto to evolve as a safe-haven asset. However, if the delay signals are prolonged, it could increase the long-term investor interest. The fact is it has already been prolonged! Trump has postponed the tariff imposition twice already!!

How Is The Fentanyl Trade Affecting The Crypto Market? What are its Connections With The Ongoing US Trade War?

Apart from automobile tariffs, Trump’s major concern is the Fentanyl (an illicit drug) trade. Why? Smugglers use digital currencies like Bitcoin to facilitate fentanyl sales. The government must impose stricter regulations to crack down on illegal crypto transactions. Such impositions might affect crypto adoption and trading volumes. A large production Fentanyl production is linked to China and Canada. The US is pressuring these countries’ officials to curb their exports. This US action is increasing the trade tensions. If the trade war escalates, the US government might take stricter actions against these countries, escalating the tensions. Eventually, the Fentanyl issue might increase economic instability and push more investors into the crypto markets. Let us wait and observe what turns the market will take!

Wrap-Up: As Trump Delays Tariffs, Crypto Comes Out On Top! A Win-Win For Crypto Investors!

In essence, Trump’s tariff delays have created both opportunity and uncertainty. Either way, it is a win-win situation for the crypto market. The market has already reacted to this by soaring high. Bitcoin touched $90K. Economic uncertainty and trade tensions will push more investors to invest in digital assets and decentralized finances. Suppose the trade tensions are to grow more, especially around the Fentanyl issue and USMCA compliance. In that case, the government might take stricter actions, adding to the tensions and creating similar uncertainties. This situation will favor the cryptos’ evolution into a haven and pave the way for the market to gain momentum. As the crisis unfolds, all eyes remain on the next move in the US trade war and its ripple effects across financial markets!