Note on the Tariff Effect on Crypto

Tariffs are taxes imposed on imported goods, usually to protect local industries or respond to trade disputes. While cryptocurrencies are digital assets and not directly subject to tariffs, tariffs can still have indirect effects on the crypto market.

When governments impose high tariffs, it can increase inflation and slow down economic growth. In such situations, investors often look for alternative assets to protect their wealth. Cryptocurrencies like Bitcoin are sometimes seen as a hedge against inflation, so demand may rise during trade tensions.