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Recently, the international trade situation has become tense again, triggering fluctuations in the global financial markets. The US stock market suffered a heavy blow yesterday, and the Crypto Assets market subsequently declined, showing a trend similar to that in April of this year.
Looking back at April this year, the escalation of trade disputes led to a continuous decline in U.S. stocks, which in turn affected Bitcoin prices, dropping from 100,000 to below 80,000. Subsequently, as signs of easing emerged, U.S. stocks rebounded against the trend, and the Nasdaq index even experienced a V-shaped recovery in July, reaching a new high.
However, on August 1st, the trade policy was upgraded again, bringing great pressure to the global financial markets. The sharp decline in the Crypto Assets market can be seen as a direct response to this situation. The prices of mainstream digital coins such as Bitcoin and Ethereum have shown significant retracement.
This phenomenon highlights once again the close relationship between the Crypto Assets market and the traditional financial market. Although Crypto Assets are often seen as safe-haven assets, they still find it difficult to stand alone in the context of increasing global economic uncertainty.
Investors need to closely monitor the developments in international trade and weigh the risks and opportunities of various assets. At the same time, this also reminds us of the importance of diversifying investment portfolios and making prudent decisions in an increasingly complex global financial environment.