Cryptocurrency and tech stocks are navigating a new phase of the trade war, exacerbated by escalating tariffs between the U.S. and China. On April 15, the White House announced tariffs on Chinese imports that could reach as high as 245%, including multiple targeted rates to combat the fentanyl crisis and specific goods. Analysts, including Aurelie Barthere from Nansen, emphasize that both crypto and expensive tech equities are now highly correlated due to reducing investor confidence and positioning. This new focus on higher value sectors could have negative implications for non-U.S. equities. As inflation concerns rise alongside tariff tensions, attention turns to Federal Reserve Chair Jerome Powell’s upcoming remarks on May 6, which may indicate the future direction of rate cuts. Analysts suggest that if Powell maintains a hawkish stance, it could negatively impact risk assets, including Bitcoin. The current market response is mainly driven by sensitive positioning rather than fundamental changes in the crypto market.

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