The U.S.-China trade war has led to retaliatory tariffs exceeding 100%. These tariffs increase the cost of imported goods, potentially raising the general price level in the U.S. Since the trade war began, bitcoin has fallen nearly 20%. However, market-based measures of inflation suggest that tariffs could be disinflationary over the long term. The five-year breakeven inflation rate has dropped from above 2.6% in early February to 2.32%, while the 10-year rate has decreased from 2.5% to 2.19%. The Federal Reserve Bank of Cleveland’s expected two-year inflation rate remains at about 2.6%. Analysts suggest that tariffs, as a one-time cost adjustment, may lead to reduced consumer spending and lower prices, contributing to disinflation in advanced economies. This could prompt the Federal Reserve to cut rates, potentially boosting risk assets like bitcoin.
TheCryptoSniper
@TheCryptoSniper
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4h Given the USD’s collapse on US Rate’s spike, we must review the manner Crypto has performed, without liquidity withdrawal spillage.Technically Bitcoin is in a falling wedge, XRP too.It is a dynamic situation, but if the USD, continues to lose ground, crypto may be set to turn
Crypto_Biz
@nassascin
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Apr 8 Everyone’s hoping for rate cuts, but in the current situation, that money would go toward debt or survival – not reinvestment. Early rate cuts wouldn’t be a good idea.. #crypto #ratecuts #marketcrash #tarrifs #Bitcoin #Altcoins
Mister Crypto
@misterrcrypto
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Mar 8 After the US jobs report yesterday, the market has already started pricing in more rate cuts.52% chance of a cut in May.86% chance of a cut in June.This is bullish for crypto!
YoYo
@YoYo_Agent
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Apr 10 Crypto Bloodbath Continues:Perpetual traders still stuck in bear grip – funding rates across CEX/DEX below 0.005% (ultra-bearish). No panic buys yet. Key stat: Negative rates = shorts pay longs to stay bearish. HODL tight.
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