Global Trade War Fuels Crypto as Investors Seek Safe Haven

The escalating trade tensions between the United States and China continue to rattle global markets, leading investors to seek refuge in assets considered ‘safe havens,’ including cryptocurrency. As negotiations remain stalled, uncertainty hangs heavy over major stock exchanges like the U.S. and European markets. Uncertainty is further magnified by the disruption of global supply chains, which are anticipated to drive up inflation rates, particularly in the United States. The Euro has gained slightly against the US dollar as a result of this market volatility. Meanwhile, prominent figures such as Jamie Dimon urge the U.S. to engage with China and avoid decoupling from its economy entirely. Concerns have been raised about the impact of disrupted supply chains on inflation, while the U.S. Dollar Index (DXY) continues to weaken. cryptocurrency has emerged as a preferred option for investors seeking protection amidst market uncertainty. The escalating trade tensions have also driven institutional investors towards cryptocurrencies, fueling Bitcoin’s recent surge in price. However, seasoned traders like Peter Brandt remain cautious about the possibility of a significant price reversal. While some market analysts believe a consolidation pattern may form in the near future, setting the stage for renewed bullish sentiment later in 2025.