The global financial market continues to fluctuate in the vortex of policies, and Trump is undoubtedly the key figure stirring up this “water area”. Recently, a decision made by Washington over the weekend has once again highlighted Trump’s strong influence on the market. The resolution that was originally planned to impose a 50% tariff on EU imports was postponed until July 9th. This news was like a pebble thrown into a calm lake, instantly causing ripples, and market risk appetite improved rapidly. During the European trading session, the price of Bitcoin rose in response, showing a positive rebound trend.
Looking back to Friday, as soon as the decision to impose tariffs starting from June 1st was announced, the Bitcoin market suffered a heavy blow. However, as the news of the postponement of the imposition of additional tariffs came, Bitcoin was able to quickly regain some lost ground, demonstrating the market’s high sensitivity to policy changes. Naeem Aslam, an analyst at Zaye Capital Markets, pointed out in a report: “Trump remains one of the most powerful market drivers in the global financial ecosystem.” Since taking office, Trump’s series of economic policy propositions, such as easing financial regulations, lowering taxes, and imposing tariffs on imported products, have profoundly influenced the decisions of global investors. Take the measure of imposing additional tariffs as an example. Theoretically, imposing additional tariffs on imported goods can reduce the quantity of imported goods, thereby causing the depreciation of the export country’s exchange rate and boosting the US dollar’s exchange rate. This series of chain reactions will affect the prices of various assets to varying degrees, and the Bitcoin market is one of them.
However, the market is not only influenced by the single factor of policy. Market liquidity declined due to public holidays in the United States and the United Kingdom on Monday. This is just like a river that was originally flowing rapidly suddenly encountering drought, with a decrease in water volume and a consequent decline in market trading activity. To a certain extent, this also affects the amplitude and frequency of asset price fluctuations. Despite this, the market turmoil triggered by Trump’s policies is still clearly evident. Whether it is the stock market, the foreign exchange market, or the cryptocurrency market, they are all closely watching Trump’s subsequent policy moves. Every decision he makes could become the trigger for the next round of market fluctuations. Global investors also have to keep their nerves on high alert and move forward cautiously in a market environment full of uncertainties.
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