How Trump's Tariffs Are Shaking Up Bitcoin Price in EURO & Crypto Markets
The EU’s response to Trump’s tariffs has sent the EUR/USD soaring. What does this mean for crypto companies?
EUR/USD Nears New Highs as EU Strikes Back at Trump’s Tariffs
The financial world is on edge as Trump’s latest tariff war against the EU intensifies. Following his announcement of universal tariffs, EU Commission President Ursula von der Leyen retaliated with strong countermeasures, calling the move a major blow to the world economy.
In response, the EUR/USD pair has surged to 1.1046, marking a 4% increase over the past month. With tensions escalating, investors are scrambling to understand the implications for crypto and how European crypto companies will navigate this crisis.
EUR/USD 1-day chart - TradingView
Here’s how the tariff war is impacting the digital asset space.
1. The Trade War Is Weakening the EU’s Economic Stability
With tariffs disrupting trade, the European economy faces a new wave of uncertainty. This could slow down investment and increase costs for businesses, including those in the crypto industry.
Historically, economic slowdowns have reduced liquidity in crypto markets, as investors opt for safe-haven assets like gold and stablecoins. However, with USDC’s value declining against the euro, European firms relying on stablecoin transactions are in trouble.
2. Crypto Companies in the EU Face Rising Costs
Many European crypto companies rely on USDC for transactions, payments, and DeFi operations. But with the euro gaining strength against the dollar, stablecoin-based transactions are becoming less valuable for EU-based firms.
If the EUR/USD continues its upward trajectory, crypto companies may need to rethink their reliance on dollar-pegged stablecoins and explore alternative solutions, such as euro-backed stablecoins or direct fiat payments.
3. Investors Are Looking to Crypto as a Hedge
Despite the risks, some traders see crypto as a potential hedge against currency fluctuations. Bitcoin and Ethereum often react to global macroeconomic instability, meaning that as the trade war intensifies, digital assets could see increased volatility and opportunities for short-term gains. Bitcoin price in EURO saw a bigger decline in prices, especially in the past month as Bitcoin price in EURO crashed by more than 8%.
BTC/EUR 1-day chart - TradingView
Additionally, if the European Central Bank (ECB) shifts towards a more aggressive monetary policy to counteract US tariffs, we could see more capital flowing into decentralized assets as a safe haven.
A Defining Moment for Crypto in Europe
Trump’s tariffs are causing ripple effects far beyond traditional finance, with the EUR/USD rally raising serious concerns for European crypto firms. With stablecoin payments losing value, transaction costs rising, and investors seeking hedges, the next few months will be crucial for the digital asset industry.
Will crypto find a new role in this trade war? Or will European firms struggle under the pressure? The coming weeks will provide the answer.
Rudy Fares
Equity Trader, Financial Consultant, Musician and Blockchain Aficionado. I spend my time doing Technical and Fundamental Analyses for Stocks, Currencies, Commodities and Cryptocurrencies.
EUR/USD Nears New Highs as EU Strikes Back at Trump’s Tariffs
The financial world is on edge as Trump’s latest tariff war against the EU intensifies. Following his announcement of universal tariffs, EU Commission President Ursula von der Leyen retaliated with strong countermeasures, calling the move a major blow to the world economy.
In response, the EUR/USD pair has surged to 1.1046, marking a 4% increase over the past month. With tensions escalating, investors are scrambling to understand the implications for crypto and how European crypto companies will navigate this crisis.
EUR/USD 1-day chart - TradingView
Here’s how the tariff war is impacting the digital asset space.
1. The Trade War Is Weakening the EU’s Economic Stability
With tariffs disrupting trade, the European economy faces a new wave of uncertainty. This could slow down investment and increase costs for businesses, including those in the crypto industry.
Historically, economic slowdowns have reduced liquidity in crypto markets, as investors opt for safe-haven assets like gold and stablecoins. However, with USDC’s value declining against the euro, European firms relying on stablecoin transactions are in trouble.
2. Crypto Companies in the EU Face Rising Costs
Many European crypto companies rely on USDC for transactions, payments, and DeFi operations. But with the euro gaining strength against the dollar, stablecoin-based transactions are becoming less valuable for EU-based firms.
If the EUR/USD continues its upward trajectory, crypto companies may need to rethink their reliance on dollar-pegged stablecoins and explore alternative solutions, such as euro-backed stablecoins or direct fiat payments.
3. Investors Are Looking to Crypto as a Hedge
Despite the risks, some traders see crypto as a potential hedge against currency fluctuations. Bitcoin and Ethereum often react to global macroeconomic instability, meaning that as the trade war intensifies, digital assets could see increased volatility and opportunities for short-term gains. Bitcoin price in EURO saw a bigger decline in prices, especially in the past month as Bitcoin price in EURO crashed by more than 8%.
BTC/EUR 1-day chart - TradingView
Additionally, if the European Central Bank (ECB) shifts towards a more aggressive monetary policy to counteract US tariffs, we could see more capital flowing into decentralized assets as a safe haven.
A Defining Moment for Crypto in Europe
Trump’s tariffs are causing ripple effects far beyond traditional finance, with the EUR/USD rally raising serious concerns for European crypto firms. With stablecoin payments losing value, transaction costs rising, and investors seeking hedges, the next few months will be crucial for the digital asset industry.
Will crypto find a new role in this trade war? Or will European firms struggle under the pressure? The coming weeks will provide the answer.
Rudy Fares
Equity Trader, Financial Consultant, Musician and Blockchain Aficionado. I spend my time doing Technical and Fundamental Analyses for Stocks, Currencies, Commodities and Cryptocurrencies.
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