A naukri.com initiative
Zycrypto
1M
264
Image Credit: Zycrypto
What a Total US-China Trade Freeze Could Mean for Crypto
- Escalating tensions between the US and China are raising the possibility of a complete trade freeze.
- A trade freeze could lead to a flight to alternative assets like Bitcoin as investors seek safe-haven options.
- Bitcoin, seen as a digital alternative to gold, could benefit from the collapse of US-China trade as investors look for non-state assets.
- The falling dominance of the US dollar due to eroding trust may lead to increased interest in Bitcoin for cross-border transactions and currency hedging.
- Cryptocurrencies like XRP could also gain traction in regions facing currency volatility and disruptions in global trade.
- In emerging markets, a trade freeze could accelerate crypto adoption to preserve value and facilitate international transactions amid economic turmoil.
- However, governments may respond to increased crypto usage with tighter scrutiny and regulations to maintain monetary control.
- A full-scale trade war might lead to crackdowns on crypto if it is perceived as a threat to economic sovereignty.
- Bitcoin could face short-term volatility in the event of a US-China trade freeze as panic selling and subsequent speculative surges are likely.
Read Full Article
15 Likes
For uninterrupted reading, download the app