Bitcoin faces new tariff risk as EU races to finalize US trade deal this month
Bitcoin faces tariff risk from a potential US-EU trade deal, impacting inflation and Fed policy.Summary
The European Union is nearing a deadline to finalize its trade deal with the US, which could expose Bitcoin to new risks. President Trump's threat to increase tariffs on EU cars to 25% could significantly impact Germany's economy and US inflation. This trade dispute affects Bitcoin through its influence on US inflation, Federal Reserve policy, and overall market risk appetite. Research suggests tariffs can measurably increase core inflation, potentially leading the Fed to maintain higher interest rates for longer. For Bitcoin, this means tighter dollar liquidity and reduced speculative appetite, historically crucial for its rallies. The outcome of upcoming negotiations on May 19 and the US PCE inflation release on May 28 will be key indicators for markets.
(Source：CryptoSlate)