The global trade war and ongoing conflicts, particularly the Ukraine war, are significantly impacting cryptocurrency markets. The prolonged effects of the Ukraine war have created negative market sentiments, which are further complicated by the trade war initiated by Trump. As this article was being prepared, key developments were unfolding.
Trump and Ukraine
Ukrainian President Zelensky visited the United States today, a trip that can be interpreted as progress in resolving issues with Russia. This visit brings a positive outlook for risk markets. Recent PCE data indicates that the Federal Reserve is pushing its limits, while ongoing negotiations concerning the U.S. debt ceiling are placing additional negative pressure on risk markets. High-ranking Democrats from Budget Committees have expressed concerns that Republican withdrawal from funding negotiations heightens the risks of a government shutdown.
During this time, Trump made a statement indicating, “We have a very fair deal. This agreement with Ukraine is a significant commitment from the U.S. I’ve talked to Putin and had good discussions. I will sign a mining agreement with Ukraine later today.”
Zelensky responded, stating, “I want to discuss what the U.S. is prepared to do.” Trump’s comments suggested he might be willing to provide a certain level of military aid, indicating a readiness to find common ground.<…>
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