The recent imposition of new U.S. tariffs on Canada, Mexico, and China has caused a sharp downturn in the crypto market. Bitcoin dropped to $91,200 before recovering to $96,000, while Ethereum suffered a 15% drop, crashing to $2,600. The overall market lost $300 billion in value in just 24 hours. The heavy liquidations led to losses in the derivatives market, with $2.33 billion in positions wiped out. However, some analysts believe that these tariffs could actually be an opportunity for Bitcoin. The U.S. is using tariffs as an indirect tool to weaken the dollar and rebalance trade deficits, which could lead to a modern version of the 1985 Plaza Accord. If successful, tariffs could provide a more favorable environment for risk assets like Bitcoin, as they could weaken the dollar and lower interest rates. Bitcoin could act as a hedge against dollar weakness and inflation in the U.S., and also as an escape from local currency devaluation in foreign markets. Despite the short-term volatility, experts believe that tariffs could trigger structural shifts in the crypto market and push more investors towards decentralized assets as a hedge against economic and political instability. However, there are risks involved, such as inflation and central bank response. The impact of tariffs on the crypto market is still unfolding, but there are emerging trends that suggest a potential opportunity for Bitcoin in the long run.



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