Tariffs and Inflation Set to Drive Market Volatility, Affecting Crypto and Traditional Assets
Global markets, including cryptocurrency, are facing heightened volatility due to inflation concerns and tariff policies, according to a recent JPMorgan Chase survey.
The findings reveal that, unlike last year, inflation has become a major concern for traders, with over half of respondents expecting these economic factors to dominate global markets through 2025.
U.S. trade policies, especially tariffs, have contributed to significant market shifts. For instance, tariffs introduced by former President Donald Trump created immediate market reactions, including sharp fluctuations in stocks, commodities, and currencies. Though some tariff measures were delayed, their potential impact remains a key source of market uncertainty.
JPMorgan’s survey notes that 51% of traders foresee inflation and tariffs as the most influential forces shaping the market landscape in the coming year. Interestingly, concerns over a potential recession have diminished, with just 7% of traders listing it as a major issue, down from 18% in 2024.
READ MORE: Michael Saylor Transforms MicroStrategy Into ‘Strategy’ With Bitcoin at Its Core
Instead, a broader focus is on the unpredictability of market movements, with many citing volatility as their primary concern. This shift in market dynamics is reflected in the growing role of electronic trading, particularly in emerging markets like cryptocurrency.
The crypto sector has not been immune to these economic changes. Bitcoin and other digital assets have experienced notable fluctuations tied to tariff-related news, such as a spike in Bitcoin prices following tariff delays on Canada and Mexico. However, trade tensions, particularly between the U.S. and China, have introduced additional volatility, with some analysts predicting significant impacts on crypto prices depending on the ongoing trade disputes.
Overall, traders are bracing for more market swings, driven not just by traditional economic events but by the unpredictable nature of global trade policies and their effect on both traditional and digital asset markets.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
