Although the cryptocurrency industry has gone through a bearish period in recent time, there is a chance that it might have a comeback soon. This is thanks in part to the recent tariffs announced by the United States. The fear is that a trade war may start as a result of such tariffs.
President Donald Trump announced the imposition of tariffs on selected imports from Mexico, Canada and the European Union. These include tariffs of manufacturing items like steel and aluminum. The move has stoked controversy among people in the American government, although Trump argues this is to reduce American trade deficits and to allow more American jobs to be created.
The move has set off a storm of additional tariffs from other countries against goods imported from the United States. There are worries that a full scale trade war may develop between the United States and many others.
There are concerns that the markets around the world may become more volatile as a result of this development. This comes as they mark a sense of uncertainty and hostility in the market due to the added competition surrounding tariffs. But at the same time, this may also result in strong changes in the cryptocurrency market.
Much of this comes from the cryptocurrency market being open to the public with no centralized bodies. By working with the same currencies throughout the world, it may be easier for people to manage an economy and trade system through such currencies even as the tariffs come into play around the world.
The news of the tariffs from the United States has helped some positive moves in the currency field. The bitcoin experienced a positive uptrend in its value during the late part of the day. The currency dropped to under $7,500 during the middle of trading on Thursday, but the currency went back up to around $7,600 after a bit of time following the tariff announcement and the retaliations from countries outside of the United States over these moves.
Many other currencies have attained similar levels of growth following the tariff announcement. This could be due to the possibility for more groups resorting to cryptocurrency transactions to avoid the rising values of tariffs. The potential for added tariffs in the start of a trade war throughout the world may also cause these currencies to become popular, although much of what is happening rests on pure speculation at the moment.
The rise in the values of these currencies comes as much of the industry has failed to experience an uptick in value following the Consensus 2018 conference in New York. Although there is traditionally a brief rise in the values of currencies following the popular event, the industry did not get such a boost. Much of this is due to worries about deregulation and some of the illegal functions that have come about within the industry. The added rise of a need for an alternative economy setup has helped to produce fears that the currency might be necessary for the future.
Expecting for a comeback!