Bitcoin ($BTC) now trades at $95K after briefly touching $92K for the first time in three weeks. Out of the 100 top tokens, only four recorded minor 24-hour gains, including $FARTCOIN with an 8% increase (huh).
The reason? Investors panic-sell on the back of Trump’s tariff war with Canada and Mexico.
The stock market suffered a similar fate as S&P 500 futures dipped 1.9% and the Dow Jones Industrial Average spiraled by 1.5%.
Is the meltdown warranted, or is there more to Trump’s plan than meets the eye?
Tit-for-Tat: Trump’s Trade War Escalates
First, context.
Trump hit Canada and Mexico with 25% tariffs, excluding Canadian energy resources that are subject to a 10% levy, warning it could get a lot worse. China will pay a 10% duty on US imports.
In response, Justin Trudeau counter-slapped the US with a 25% tariff. Mexican President Claudia Sheinbaum also promised to push back but didn’t yet specify the levy.
The bottom line: everything just got a lot more expensive.
You might not have to pay more for a new Ford F-150, but wait until you see prices on those Mexican avocados you buy for breakfast.
And when the time comes to fill up your Ford’s tank, you might find gasoline also became pricier – because 60% of oil in the US comes from Canada.
It’s easy to see why risk-averse investors decided to take their crypto profits and, perhaps, reinvest in safe-haven assets (Gold? Cash under the mattress?).
The CoinMarketCap 100 Index fell by 8.28%, and market sentiment crossed the Fear territory for the first time since October.
A Gambit to Reshape the Global Monetary Order?
Now, let’s think – why does Trump need tariffs in the first place?
In a nutshell, tariffs are a tool to force a restructuring of the global monetary system.
The dollar being the most common reserve currency means three things:
- The dollar is structurally overvalued
- The US must maintain trade deficits to supply global dollar needs
- US gets cheaper borrowing costs
Trump wants to keep yields low while also lowering the dollar value. Countries would then have to reduce their short-term dollar bill reserves and hold longer-term Treasury bonds instead.
Triffin dilemma at its finest – a strong dollar is a headache for US exporters.
A weaker dollar could make US exports more competitive and reduce US refinancing risk.
But how
Traditional inflation hedges like gold would also plunge due to global currency debasement. Crypto exists outside the traditional financial system and thus offers a unique alternative.
And not just for retail investors – banks and governments, too, might increase crypto exposure because all that capital from dollar reserves needs to flow somewhere.
This theory ties perfectly with Senator Lummis’ recent proposal for the US to purchase 200K $BTC annually for five years to create a strategic reserve.
Meme Index ($MEMEX) Manages Meme Coin Risk in Uncertain Times
Ultimately, Trump’s economic agenda is a complex and far-reaching scheme that will drive crypto adoption in the long run, whether intentionally (most likely) or not.
So when, not if, the market recovers, altcoins will surge to new heights.
Presale tokens are particularly resistant to this temporary storm. Their low prices offer a cushion against downturns and greater upside potential upon recovery.
Namely, Meme Index ($MEMEX), which raised $3.2M in funding since December, takes a unique approach to risk management.
No longer are indexes a Wall Street tool – degen traders can now diversify their meme coin portfolios with four baskets catered to different risk appetites.
By spreading investment across eight projects instead of going all-in on one, you offset potential losses and generate higher returns.
$MEMEX token holders gain access to all four Meme Index baskets and the right to vote on project development proposals.
One $MEMEX now costs $0.0158443. This is the best time to buy $MEMEX at a discounted price.
When $MEMEX launches on exchanges and Meme Index rolls out its platform, the token could hit $0.074, a 368% increase from the current level.
And given the market’s cautious future outlook, Meme Index’s focus on mitigating risk is likely to drive demand for $MEMEX for years to come.
Is The Great Rotation Underway?
When bulls see red, they buy the dip.
Today’s charts might be scary, but Trump’s tariffs will ultimately benefit crypto in the long run.
Restructuring of the global economy is rarely, if ever, easy, but capital flowing out from fiat and commodities will likely end up in the crypto market.
Meme Index ($MEMEX) is set to launch just in time to capitalize on this influx of new capital and provide newcomers with a less risky way to invest in meme coins.
However, we remind you that no gains are guaranteed, so DYOR and only invest as much as you can afford to lose.
