Opinion: The role of Bitcoin as a hedge tool against US tariffs may be enhanced, and the polarization in the crypto market may continue
PANews reported on March 29, according to Samaa, Exness financial market strategist Inky Cho stated that the recent downturn in the cryptocurrency market may be related to the panic selling triggered by Mt.Gox's previous debt repayment transfer of BTC. At the same time, Trump's comments about an upcoming economic recession have impacted both stock and cryptocurrency markets.
Currently, Bitcoin maintains a correlation with Nasdaq at around 40%, down from its peak of 72%. However, Bitcoin is polarizing with ETH and other altcoins. Bitcoin seems more like a tool for hedging against economic uncertainty and current US tariffs. Meanwhile, including Ethereum within altcoins still ties predominantly with tech industries and tech stocks dominating Nasdaq market. Therefore, in the long run, Bitcoin's role as a tariff hedging tool might increase especially when tariffs trigger economic instability.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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