Trade war grips crypto markets.

Today is one of the worst days for the crypto market. Red numbers dominate the charts, and volatility has increased significantly. But what exactly happened?

Over the weekend, former President Trump introduced new import tariffs on Mexico, Canada, and China. In response, both Mexico and Canada implemented similar countermeasures against the United States. This has escalated global market tensions, and we can now speak of a full-blown trade war.

And that’s never good news for financial markets. Investors dislike uncertainty, and trade wars often lead to higher costs for businesses, supply chain disruptions, and—most importantly right now—new concerns about inflation.

You might be wondering: is Trump good or bad for crypto?

The short answer: a trade war is bad for any market, including crypto. However, this seems to be a strategic move by Trump to strengthen his negotiating position. At this point, there is no reason to believe we are entering a prolonged downtrend. In fact, considering the structural positive developments we expect for 2025, crypto’s long-term outlook remains strong.

It’s also important to remember that a 30% correction in a bull market is not unusual for crypto. This remains one of the most volatile markets in the world.

For now, don’t panic. History shows that sharp declines are often followed by strong recoveries. This is exactly why periodic investing in crypto is so important. By consistently investing, you average your purchase price and reduce the impact of market fluctuations.

If you haven’t set up a periodic investment plan yet, this might be a good moment to consider it. Stay focused on the long term and keep a steady strategy.