1. Trade War Escalation: President Trump has threatened a massive 50% tariff on Chinese imports if China doesn’t withdraw its newly announced 34% retaliatory tariffs, signaling a dangerous cycle of economic retaliation.
2. Decelerating Growth: IMF projections show major economies facing significant slowdowns, with US growth expected to fall from 2.8% in 2024 to 2.2% in 2025, while China’s growth may decelerate to 4.5%.
3. Currency Impact: China is considering allowing the yuan to depreciate to offset US tariffs, potentially triggering currency volatility that historically benefits decentralized assets like Bitcoin.
