Mounting international trade tensions are rattling cryptocurrency markets in India, which could also accelerate institutional crypto adoption, according to several industry executives. Since US President Donald Trump announced sweeping tariffs on US imports on April 2, core cryptocurrencies experienced significant price swings, exacerbating an already ongoing market rout. However, economic uncertainty has historically driven institutional interest in digital assets as a diversification strategy, as noted by David Siemer, co-founder and CEO of Wave Digital Assets. Bitcoin has demonstrated resilience amid market turbulence, highlighting its potential as a hedge against geopolitical disruption, as per a Binance report. With traditional banking channels becoming entangled in geopolitical tensions, there is a growing demand for blockchain-based settlement solutions outside of conventional banking networks. President Trump recently paused the implementation of a portion of tariffs on US imports while planning to increase levies on Chinese goods to 125%, resulting in a positive reaction in the S&P 500 and the cryptocurrency market, including Bitcoin. DeFi protocols are well-positioned to benefit from trade turmoil, offering a borderless alternative for credit access, yield earning, and capital movement. However, crypto prices are likely to continue reflecting the broader market situation, correlating with risk assets. As the market evolves, DeFi is expected to rise again, providing new opportunities for the crypto industry in India.
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