Market insights by Inky Cho, Financial Markets Strategist at
Whether you're already holding Bitcoin or considering investing soon, the question of how US tariffs might influence its price is likely top of mind. The return of Donald Trump to the presidency has once again thrown US politics and global relations into turbulence.
Following Trump라이브 바카라 re-election, a wave of aggressive policies ensued — among them, sweeping deportation initiatives and controversial decisions from Elon Musk, now head of the Department of Government Efficiency (DOGE), adding further unpredictability for market participants.
Notably, Trump vowed to impose hefty import tariffs — 25% on goods from Canada and Mexico and 20% on Chinese imports — within his first 100 days in office. These plans have cemented his position as one of the most divisive leaders in modern political history.
Yet, tariffs aren’t the only focal point. “Cryptocurrency” has taken on added importance under Trump라이브 바카라 administration, with promises to ease regulations and strengthen the position of Bitcoin and other digital currencies. He recently signed an executive order establishing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” comprised of Bitcoin and other seized cryptocurrencies.
These assets, accumulated from legal forfeitures, will be stored as part of a digital reserve likened by David Sacks, the administration라이브 바카라 AI and crypto lead, to a "Fort Knox for digital currencies."
The move stirred debate within the crypto community. Some called for stronger action, while others raised concerns over transparency.
Sacks ordered an audit of the government라이브 바카라 crypto holdings, estimating the reserve includes at least 200,000 Bitcoin. But can this truly position Bitcoin as a hedge? The answer remains layered.
Could Tariffs Spark A Bitcoin Rally?
Despite Trump's promotion of crypto, his involvement in launching meme coins like $TRUMP and $MELANIA just before taking office caused a backlash. CoinCorner CEO Danny Scott voiced skepticism, calling it a publicity stunt and questioning Trump's sincerity.
Amid this uncertainty, however, tariffs may have a silver lining for crypto. If Trump's plans — spanning trade duties, immigration crackdowns, and tax cuts — are implemented, a surge in inflation could follow.
However, this type of inflation will not be a positive sign at all. For example, American consumers might rush to purchase foreign vehicles before new tariffs take effect, temporarily lifting retail sales and creating a misleading picture of economic growth.
Evidence of this surfaced in December 2024, when annual CPI rose to 2.9%, though core inflation stayed lower. Unlike traditional safe-haven assets like gold, cryptocurrencies — especially Bitcoin — are more reactive to inflation and macroeconomic changes.
This was clear when Bitcoin rose $1,500 to $98,000 in a single day after mixed US inflation data hit the market.
Since many view Bitcoin as a commodity, it라이브 바카라 worth exploring how tariff policy might influence its trajectory and the wider digital asset market.
Short-term Pressure and Market Turbulence
In the immediate term, tariffs could suppress Bitcoin라이브 바카라 performance due to its speculative, growth-based nature. This was evident in its recent dip, where the entire crypto market endured a sharp correction.
Between March 10 and 11, over $1 billion in crypto assets were liquidated. Major players like Bitcoin and Ethereum experienced significant losses.
One contributing factor was the large-scale movement of Bitcoin by Mt. Gox, a now-defunct exchange repaying its creditors — triggering panic. At the same time, an Ethereum whale reappeared and deposited substantial ETH into Kraken, fueling more uncertainty. Another major ETH holder sold off assets at a loss, possibly to avoid forced liquidation.
As if that wasn’t enough, Trump라이브 바카라 warning of an impending recession rattled both equity and crypto , reversing gains made following recent monetary policy updates.
Bitcoin briefly plunged to a multi-month low before recovering slightly. In such volatile conditions, it라이브 바카라 essential for traders to apply proper risk management, including Stop Loss measures, especially as uncertainty lingers around Trump라이브 바카라 tariff agenda. Still, is this a temporary dip — or a sign of deeper potential?
Looking Ahead: Bitcoin As A Tariff Hedge
Currently, Bitcoin라이브 바카라 correlation with the NASDAQ hovers at around 40%, much lower than its peak of 72%. Yet, history has shown that during crises — like the March 2023 banking collapse — Bitcoin can decouple and act more like a safe-haven asset.
This dual identity makes Bitcoin unique. Unlike Ethereum and other altcoins more closely linked to tech performance, Bitcoin increasingly resembles digital gold — a potential hedge in times of geopolitical and economic upheaval.
According to analysts, this divergence is expected to continue, positioning Bitcoin as a potential shield against tariff-induced volatility, while altcoins remain more speculative and tech-dependent.
Final Thoughts
Tariffs reshape trade and economics, often leading to new alliances and conflicts. In the short run, they could cause inflation to rise, slow growth, and inject volatility into like Bitcoin. In the long run, however, Bitcoin may strengthen its case as a hedge, especially if economic instability grows.
What comes next for Bitcoin is uncertain. But for now, traders would be wise to monitor US policy shifts and global developments closely. Staying informed will help them navigate risk — and possibly tap into Bitcoin라이브 바카라 evolving role as a defensive asset.
Disclaimer: Cryptocurrency investments are risky and highly volatile. This is not financial advice; always do your research. Our editors are not involved, and we do not take responsibility for any losses.
