How Will Trump Tariffs Affect the Crypto and Bitcoin Markets?

Bittime - The tariff policy that President Donald Trump will announce on April 2 2025 has become the center of attention of global financial markets, including the crypto market. With plans to implement new tariffs against 15 countries, including China, Mexico, and Canada, many investors are wondering how they will impact the price of Bitcoin (BTC).

Currently, Bitcoin is still in a bearish trend, with prices hovering around $84,327 after previously reaching nearly $110,000 at the start of the year. However, a number of analysts are optimistic that this policy could actually be a catalyst that pushes Bitcoin prices up to $150,000 in the long term.

How Does Trump's Tariff Policy Affect Bitcoin?

Bitcoin has been under pressure since early 2025, as economic uncertainty increases due to US trade policies. The new tariffs imposed by Trump aim to protect US domestic industry, but also have the potential to lead to a trade war and weaken the US dollar in global markets.

According to Aran Hawker, CEO of CoinPanel, Bitcoin's current movements are strongly influenced by macroeconomic factors. “Crypto markets are increasingly correlated with traditional financial markets, and the tariffs introduced by the Trump administration created uncertainty that pushed investors away from risky assets, including Bitcoin,” he said.

However, the weakening of the US dollar due to this policy could be an advantage for Bitcoin in the long term. If fiat currencies experience depreciation, Bitcoin as an alternative asset could become increasingly popular.

Also read: Ripple Integrates RLUSD for Global Payments, Here's the Update!

Bitcoin Prediction: Can It Break $150,000?

Although Bitcoin faces pressure in the short term, some analysts see opportunities for significant price increases in the next few months.

Omid Malekan, a professor at Columbia Business School, said that Bitcoin could take on the role of "digital gold" amid economic uncertainty. "If gold prices soar due to tariff policies, then Bitcoin could also experience a similar surge as it is increasingly recognized as a hedge asset," he said.

Besides that, Zach Pandl, Head of Research at Grayscale, said that Trump's tariffs could accelerate Bitcoin adoption by reducing the dollar's dominance in global trade. “The tariff policy will weaken the dollar, creating space for Bitcoin as an alternative global monetary asset,” he said.

Meanwhile, blockchain analyst Dr. Kirill Kretov noted that there has been a large increase in the amount of Bitcoin withdrawn from exchanges by institutions and large investors since the end of 2024. “This kind of reduction in liquidity usually precedes a large price spike, as we saw before the 2020-2021 bull run,” he said.

If this trend continues, some analysts believe Bitcoin could reach the $150,000 level in the next few months.

Conclusion

Donald Trump's tariff policy has added pressure on Bitcoin prices in the short term, but on the other hand has also opened up significant growth opportunities in the long term. If the US dollar weakens and investors look for alternative hedge assets, Bitcoin could become increasingly popular and experience a major price spike.

For investors, the volatility in the next few weeks could be an opportunity to accumulate Bitcoin before a potential price spike occurs. With more and more institutions starting to consider Bitcoin as a store of value, the future of this cryptocurrency remains promising.

FAQ on the Impact of Trump Tariffs on Bitcoin

1. Will Trump's tariff policy directly reduce Bitcoin prices?

Yes, in the short term, tariffs could cause economic uncertainty that makes investors avoid risky assets, including Bitcoin.

2. Why can Bitcoin rise after the tariff policy is implemented?

If the US dollar weakens due to tariffs, Bitcoin could become an alternative store of value, attracting more investors and pushing prices up.

3. Can Bitcoin really reach $150,000?

Some analysts believe that if global economic conditions are favorable, Bitcoin could reach that price in the next few months.

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Reference

Finance Magnates, How Donald Trump’s Tariffs Will Impact Bitcoin? Expert Predicts BTC Price Jump to $150K, accessed April 3, 2025.

Author: MF