As we approach the final hours of February, cryptocurrency enthusiasts are gearing up for a pivotal March, a month expected to unravel numerous pressing issues such as customs tariffs, the Ukraine war, and interest rates. The significance of this month cannot be overstated, as it will potentially determine the future trajectory of the cryptocurrency market.
March’s Impact on Cryptocurrencies
Trump took office in January and made bold statements regarding additional customs tariffs in February. He threatened China with tariffs reaching up to 100% while announcing new tariffs of 10% for China and 25% for the EU, set for April.
Simultaneously, Trump accelerated actions concerning the war between Russia and Ukraine, asserting claims over Ukraine’s underground wealth. His aggressive stance culminated in a public reprimand of the Ukrainian President while in the Oval Office.
Historical Context for Cryptocurrencies
So, how do we know that March will be decisive? According to Bloomberg, Mexico is preparing to raise tariffs on Chinese goods to avoid Trump’s proposed 25% customs tax, as it has no choice but to comply. With pressure mounting, China is compelled to negotiate with the U.S. as its trade partners impose additional tariffs.
Recent discussions with the UK indicated that Trump believes the resolution lies not in more tariffs but in trade agreements that balance deficits for the U.S. Treasury Secretary Bessent emphasized that Canada and Mexico should implement tariffs equivalent to those imposed by the U.S. on China.
January and February saw pivotal developments for risk markets, including cryptocurrencies. As obstacles begin to resolve, the market may face an opposite trajectory. Alternatively, certain EU officials supporting Ukraine could escalate tensions, leading to significant global consequences.
