Viewpoint: Bitcoin’s role as a U.S. tariff hedging tool may increase, and polarization in the crypto market may continue

PANews March 29th news, according to Samaa, Exness financial market strategist Inky Cho said that the recent decline in the cryptocurrency market may be related to the previous sell-off panic caused by Mt.Gox's debt repayment transfer to BTC, while Trump's remarks about the upcoming recession have brought an impact on the stock and cryptocurrency markets.

Currently, the correlation between Bitcoin and Nasdaq remains at around 40%, down from the previous peak of 72%. However, Bitcoin is polarizing with ETH and other altcoins. Bitcoin is more like a tool to hedge economic uncertainty and current US tariffs. Altcoins, including Ethereum, are still pegged to the Nasdaq market, which dominates the technology industry and technology stocks. Therefore, in the long run, the role of Bitcoin as a tariff hedging tool may be enhanced, especially when tariffs trigger economic instability.