On May 19th, U.S. Treasury Secretary Janet Yellen announced plans to reinstigate high tariffs for trading partners perceived as acting in *bad faith*. This includes rates that may exceed 10%, prompting formal notifications aimed at renegotiation efforts. Currently, tentative agreements have been established with the UK and China, with tariffs adjusted to 30% for the U.S. and 10% for China, along with a newly instated dialogue mechanism to stabilize bilateral relations. However, the U.S. stance remains stringent towards multiple nations.
The reinstatement of tariffs, compounded by recent credit rating downgrades, has significantly heightened market *risk aversion*. This shift has diversified asset allocations, with increased investments flowing into *inflation-resistant* assets, notably cryptocurrencies. Analysts at Bitunix suggest that amidst tightening trade policies and escalating U.S. debt concerns, capital may increasingly gravitate toward Bitcoin and other non-sovereign assets. Investors are advised to monitor the critical support level of $100,000 for Bitcoin, while also keeping an eye on resistance at $105,000, as developments in U.S.-China trade relations may substantially influence market sentiment.