Starting from February 1, a 10% tariff will be imposed on the EU, with an additional 200% tariff on French wine.
Does it seem unrelated to Crypto? In fact, it is very relevant.
First, there is the dollar effect. Tariff friction has led to a weakening of the dollar, with EUR/USD volatility soaring to 5.89%, hitting a new high since November.
The weak dollar theoretically benefits BTC (the narrative of the dollar as a substitute), but in the short term, a decline in risk appetite will first hit all risk assets.
Secondly, there is the transmission path. European stocks have been declining continuously, with DAX down 0.68% and CAC40 down 0.82%. The sentiment in the stock market typically transmits to Crypto with a delay of 6-24 hours.
Thirdly, there is policy uncertainty. Trump's tariff policy has always been 'what you see is what you get,' but the magnitude and scope often exceed expectations.
For Crypto investors, the next two weeks are a high-risk period.
Before and after the tariff implementation on February 1, market volatility will increase. It is recommended to reduce leverage and maintain flexibility.
Macroeconomic risks have never been something that Crypto can be immune to.