🎉 Share Your 2025 Year-End Summary & Win $10,000 Sharing Rewards!
Reflect on your year with Gate and share your report on Square for a chance to win $10,000!
👇 How to Join:
1️⃣ Click to check your Year-End Summary: https://www.gate.com/competition/your-year-in-review-2025
2️⃣ After viewing, share it on social media or Gate Square using the "Share" button
3️⃣ Invite friends to like, comment, and share. More interactions, higher chances of winning!
🎁 Generous Prizes:
1️⃣ Daily Lucky Winner: 1 winner per day gets $30 GT, a branded hoodie, and a Gate × Red Bull tumbler
2️⃣ Lucky Share Draw: 10
During times of economic turmoil, the market is always looking for a safe haven. But in the crypto market, a place seemingly full of opportunities, chances and traps are often separated by just a thin window paper.
**Trade Protectionism Escalates: Why Are Crypto Assets Gaining Attention?**
Recently, tariff policies have been upgraded—imposing a 25% tariff on truck parts and a 10% tariff on buses—appearing as trade protection measures, but in reality, they are adding to global economic woes. When logistics costs rise, this pressure inevitably propagates downstream, ultimately reflected in consumer prices. In August, furniture prices in the US increased by 4.7% year-over-year, and this is just the beginning; inflationary pressures are still building.
But for seasoned players in the crypto space, this story is all too familiar. Whenever economic uncertainty arises, capital begins seeking assets outside the system for protection. Looking back at the 2019 trade war, Bitcoin surged from a low of $3,000 to $14,000—this is no coincidence but a sign that risk assets are searching for a new pricing logic.
Today, a similar scenario is unfolding again. The uncertainty brought by Trump’s policies has caused Bitcoin to decline synchronously with gold and US stocks, which is a rare occurrence. This precisely indicates that the market is rethinking asset allocation logic. In the short term, tariff conflicts may suppress the performance of risk assets, but if the Federal Reserve slows interest rate hikes or even initiates a new round of liquidity easing, the narrative of Bitcoin as "digital gold" will be reinforced once more. Historically, periods of policy chaos are often the best windows for the crypto market to complete a valuation reset.
**Three Practical Tips to Seize Opportunities Amid Volatility**
**Step 1: Gradually accumulate mainstream coins after emotional dips**
When tariffs are first implemented, the market tends to overreact. For example, in February 2025, when Trump announced tariffs, Bitcoin once plunged 6% in a single day, but within a few days, it rebounded above $100,000. Although short-term fluctuations can be frightening, they are actually opportunities for rational investors.
The approach is simple: don’t try to go all-in at once. Divide your planned investment into 3-5 parts. Each time the prices of mainstream coins (Bitcoin, Ethereum) drop by 5%-10%, buy one part gradually. This reduces the average cost and avoids the psychological pressure of buying at the lowest point. The focus should be on Bitcoin and Ethereum, the most liquid and consensus-backed coins.
**Step 2: Beware of high leverage traps**
Markets with high volatility are most likely to trigger human greed. Seeing prices fall, traders want to buy the dip; seeing rebounds, they want to double down. At this point, leverage becomes an amplifier—it can magnify gains but also losses. During periods of economic policy uncertainty, high leverage trading is akin to gambling. It is recommended that ordinary investors stick to spot holdings and temporarily stay away from futures trading.
**Step 3: Pay close attention to policy developments**
Crypto market volatility in the short term is often highly correlated with macro policies. Expectations of Federal Reserve rate hikes, government regulatory attitudes towards crypto assets—all these directly influence market sentiment. It is advisable to regularly monitor key economic data releases and policy statements, as they often reflect the market’s next direction in advance.
In summary, economic uncertainty indeed creates opportunities for re-pricing crypto assets, but these opportunities require calm judgment and disciplined execution. Rushing or greed should be avoided; maintaining rationality amid volatility is the key to truly benefiting from it.