Amid escalating trade tensions between the US and China, cryptocurrency and tech stocks are navigating a new phase of the trade war. Following the White House's announcement on April 15 of tariffs reaching up to 245% on Chinese imports, market analysts are expressing concerns. With a mix of tariffs aimed at specific goods, including reciprocal tariffs and those addressing the fentanyl crisis, the focus has shifted towards high-added-value sectors like tech and pharmaceuticals. Aurelie Barthere from Nansen noted the significant correlation between US equities and crypto since November 2024, indicating that risk assets are highly sensitive to these macroeconomic changes. As US Federal Reserve Chair Jerome Powell prepares for a May 6 speech, analysts are wary of his potential stance on interest rates amidst inflation concerns. A hawkish outlook could further depress risk assets, while a balanced tone might stabilize market confidence. Overall, current positioning is described as thin, leading to heightened volatility as investors reassess their strategies in response to the ongoing geopolitical and economic landscape.

Source 🔗