Trade Tensions

Definition ∞ Trade tensions refer to strained economic relations between countries, often involving tariffs or restrictions. These situations arise from disagreements over trade policies, intellectual property rights, or market access, leading to retaliatory measures. Such tensions can disrupt global supply chains, increase business costs, and negatively impact international economic growth. They often result in heightened market volatility and shifts in investment patterns.
Context ∞ Trade tensions frequently appear in global economic news, and their impact extends to digital asset markets, influencing investor sentiment and capital flows. Geopolitical events and trade disputes can prompt investors to seek alternative assets, including cryptocurrencies, as hedges against currency instability or inflation. The broader economic uncertainty created by trade tensions can affect the adoption rates and regulatory approaches towards digital assets worldwide.