Crypto, stocks enter ‘new phase of trade war’ as US-China tensions rise

Increased US-China trade tensions, marked by new tariffs on Chinese imports, have significantly impacted cryptocurrency and equity markets. This escalation represents a new phase in the trade war, focusing on high-value sectors like technology and pharmaceuticals. The correlation between US equities and crypto has intensified, leading investors to de-risk and sell "expensive assets." Market recovery depends heavily on the outcome of global tariff negotiations. A prediction suggests a market bottom by June 2025, with subsequent recovery. China's appointment of a new, experienced trade negotiator adds to the complexity of the situation. The Federal Reserve's upcoming decision on interest rates will also influence market reactions. A hawkish stance could negatively affect risk assets like Bitcoin. Current market responses are driven by macro events and investor sentiment rather than fundamental changes. Thin positioning and fragile confidence exacerbate market volatility.