The cryptocurrency market enters the trading day on April 15 with an unstable sentiment, primarily stemming from global political fluctuations. From the trade war between the U.S. and China to geopolitical tensions in the Middle East, all are blowing strong winds into the volatility of digital currencies.
President Donald Trump, who has just been re-elected, continues to surprise investors by reinstating tariffs on goods from China, Canada, and Mexico. This is the first shock that has led investors to seek safe-haven assets like gold instead of Bitcoin, as is usually the case, due to caution regarding unclear crypto policies. Meanwhile, Trump's public support for making the U.S. the 'crypto capital' and considering the establishment of a strategic Bitcoin reserve sends a mixed message: both promising and vague.
Not stopping there, the escalating conflict between Israel and Hezbollah has caused the Bitcoin price volatility index to spike sharply. Investors are fleeing leveraged positions, causing total liquidation value to exceed $260 million in just 24 hours. Also overnight, the OM (MANTRA) token unexpectedly 'free-fell,' dividing its value by 15 times, raising concerns about the reliability of altcoin projects.
In Brazil, despite having over 17 million people holding digital assets, the lack of a clear legal framework continues to be a major barrier. Digital assets have yet to be legally recognized, creating an underground market that poses both legal and financial risks.
In summary, the current political context makes the crypto market more unpredictable than ever. While 2021-2022 was a growth period due to low-interest capital inflows, currently, every tweet or policy decision from global leaders could 'greenlight' or 'red-hot' the entire market.
Investors need to stay vigilant, keep up with current affairs, and maintain strict risk management principles during this volatile period.