The tariff war's impact on cryptocurrency exchanges
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In the global economy, the tariff war has caused volatility in financial markets, including the cryptocurrency exchange BYDFi. With the increasingly close connection between the cryptocurrency market and the traditional financial market, the price volatility of mainstream cryptocurrencies such as bitcoin has increased, the asset value of investors is unstable, and users with low risk tolerance choose to withdraw their investment and turn to stable areas such as Treasury bonds and gold, resulting in the outflow of funds from BYDFi and pressure on capital liquidity.
In terms of global trade, the tariff war has pushed up trade costs, frustrated enterprises’ import and export, reduced economic growth expectations, inhibited investors’ willingness to invest, slowed down the entry of new investors in the cryptocurrency market, hindered BYDFi’s expansion of user groups, and the growth of new user registrations was weak or even negative.
But the tariff war also presents opportunities. With the adjustment of monetary policies in some countries, inflationary pressure increases and the purchasing power of legal tender decreases. The decentralized and limited total amount of cryptocurrency attracts some investors to use it as a choice to fight inflation and preserve asset value. If BYDFi can improve its trading features and bolster its security, it could attract new investors to inject money into the platform.
But the tariff war also presents opportunities. With the adjustment of monetary policies in some countries, inflationary pressure increases and the purchasing power of legal tender decreases. The decentralized and limited total amount of cryptocurrency attracts some investors to use it as a choice to fight inflation and preserve asset value. If BYDFi can improve its trading features and bolster its security, it could attract new investors to inject money into the platform.