How Trade Wars Pressure the Crypto Market

EUR/USD

Key zone: 1.1600 - 1.1700

Buy: 1.1730 (on a strong positive foundation) ; target 1.1850-1.1900; StopLoss 1.1680

Sell: 1.1600 (on a strong breakdown of 1.1630) ; target 1.1450; StopLoss 1.1650

GBP/USD

Key zone: 1.3350 - 1.3450

Buy: 1.3500 (on strong positive fundamentals) ; target 1.3650-1.37; StopLoss 1.3420

Sell: 1.3350 (on a pullback after a retest of the 1.34 level) ; target 1.3200-1.3150; StopLoss 1.3420

USD/JPY

Key zone: 150.00 - 151.50

Buy: 151.50 (on a confident breakdown of 151.00) ; target 153.50; StopLoss 150.80

Sell: 150.00 (on strong negative fundamentals) ; target 148.50-148.00; StopLoss 150.70

AUD/USD

Key zone: 0.6450 - 0.6550

Buy: 0.6550 (on a pullback after a retest of 0.6450) ; target 0.6700-0.6750; StopLoss 0.6480

Sell: 0.6400 (on strong negative fundamentals) ; target 0.6250; StopLoss 0.6470

USD/CAD

Key zone: 1.4000 - 1.4100

Buy: 1.4100 (on a strong breakdown of 1.4050) ; target 1.4250; StopLoss 1.4050

Sell: 1.4000 (on strong negative fundamentals) ; target 1.3850; StopLoss 1.4050

Trump announced that the U.S. was waging a trade war against China back in his first presidential term. In 2018–2019, tariff increases on metals, electronics, and components triggered a domino effect, disrupting production chains and crashing stock indices. At that time, cryptocurrencies were perceived as “risky assets” and moved in sync with the technology sector.

Today, political actions are shifting the balance of power not only in traditional markets but also in the digital economy. Recall that Trump again accused Beijing of “unfair competition” and declared his intention to completely revise trade relations with China, emphasizing that “America will no longer tolerate inequality.” From that moment, crypto traders began pricing in the risk of a global catastrophe. The announcement of 100% tariffs on Chinese imports became the trigger for the collapse: within hours after the statement, Bitcoin plunged from the $121,000 zone to $108,000, and the total liquidation volume reached around $21 billion, although actual losses turned out to be significantly higher.

The U.S.–China trade conflict hit the crypto market harder than expected. It affected not only finished products but also supplies of technological equipment — from microchips to mining components. The rise in equipment costs increased the production price of cryptocurrencies and reduced the resilience of mining companies.

During sharp market swings, algorithmic trading, margin positions, and derivatives amplified the amplitude of price movements — spreads widened to extreme levels, and exchanges reported delays and requotes in order execution. Even institutional players were forced to close positions to avoid avalanche-like liquidations.

In such moments, the crypto market loses its main foundation — liquidity — and enters a cascade sell-off: weak players exit, large funds cut exposure, and those outside the market are left unsure whether to celebrate or regret the missed profits. Of course, as volatility stabilizes, part of the capital eventually returns.

At such moments, the crypto market loses its key support — liquidity — and enters a cascading sell-off: weak participants exit, funds cut exposure, and only onlookers remain outside the market, unsure whether to celebrate or regret missed profits. However, after volatility stabilizes, part of the capital gradually returns.

Today, digital assets are firmly integrated into the global economy, and the trade war has acquired a technological dimension — control over rare earth metals, semiconductors, and software. The tightening of these restrictions will inevitably affect the blockchain industry as well.

The situation is worsened by the factor of political speculation — the involvement of the Trump family and the company World Liberty Financial (WLF) in promoting the tokens $WLFI, $TRUMP, and $MELANIA. In addition, the structure American Bitcoin Corp., linked to the Trump family, participates in Bitcoin mining and the management of BTC reserves.

The presence of politicians in crypto assets, while governments simultaneously influence the regulation of these same instruments, creates a potential conflict of interest. Meme tokens and coins without real utility are signs of speculative volatility, while possible ties with opaque foreign capital pose risks to national security.

The political factor has become critically important in analyzing the cryptocurrency market: Bitcoin has already lost its status as a safe haven. And those who truly want to protect their capital should take a closer look at gold.

So we act wisely and avoid unnecessary risks.

Profits to y’all!