Altcoin to Stablecoin Shift Amid Tariff War Concerns

03 April, 2025, 07:29 AM

Bitget's chief analyst, Ryan Lee, observes a significant fund migration from altcoins to stablecoins, triggered by concerns surrounding potential economic impacts of escalating US tariffs. The analysis indicates that leading altcoins, including ETH, have experienced substantial declines, exceeding 6% in many cases. The announced tariff policies are projected to negatively impact the US economy, potentially inflating prices for consumers and businesses due to increased costs of imported goods. This situation may weaken the US dollar, consequently bolstering Bitcoin's appeal as an alternative asset. However, for the altcoin market to withstand current selling pressure, a robust ecosystem and a strong demand base are crucial. The shift reflects investors seeking refuge in the relative stability of stablecoins during times of economic uncertainty and market volatility. ```