Trump’s Tariff Tweets Still Move Currencies and Crypto Could Be Next
Donald Trump’s social media activity has significantly declined in market-moving influence compared to his first term, according to JPMorgan research. Of his 126 posts on trade and economics, only 10% caused notable currency fluctuations, a stark contrast to the 60 market-moving tweets per week during the 2018-2019 trade wars.
While Trump’s overall market impact has faded, tariff-related tweets remain influential. Earlier this month, his announcement of 25% tariffs on Mexico and Canada led to a 2% drop in the peso and a 1% decline in the Canadian dollar.
Similarly, the Chinese yuan reacted to trade threats, falling after Trump’s Fentanyl-related tariff comments but recovering following positive remarks about a conversation with President Xi.
While crypto markets remain largely unaffected, Trump’s pro-crypto stance and evolving economic policies could soon introduce volatility. If tariffs expand to the bitcoin mining industry or stablecoins, crypto assets could see increased price swings.
While Trump’s market-moving power is waning, his policies remain a wild card for global markets including crypto.
Source:news.bitcoin.com
