Even though cryptocurrencies are digital and decentralized, they aren’t immune to global trade policy. Some reasons:
1. Inflation & Cost Pressures
Tariffs increase cost of imported goods, materials, components. That can feed inflation. Central banks often respond with tighter monetary policy (higher interest rates), which tends to strengthen the US dollar. A strong dollar often weighs on Bitcoin & some cryptos, because they’re priced in USD. When borrowing costs rise, risk assets get punished.
2. Risk Sentiment & Correlation
Cryptos still behave a lot like "risk assets" in many cases: when people are worried about economic slowdowns, trade wars, or uncertainty, investors often reduce exposure to volatile assets. Crypto declines often mirror stock market slides during these periods.
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