How trump tariffs effected crypto ?
Trump-era tariffs didn’t directly target cryptocurrencies, but they had indirect effects on the crypto market through broader economic and geopolitical shifts. Here’s a breakdown of how his tariffs influenced crypto:
1. Trade War Uncertainty Boosted Bitcoin as a “Safe Haven”
When Trump imposed tariffs on China (and vice versa), it caused market uncertainty and fears of economic slowdown. Investors often move money into alternative assets like gold or Bitcoin during uncertain times.
In 2019, during key phases of the U.S.–China trade war, Bitcoin’s price surged—from around $4,000 in early 2019 to over $12,000 mid-year.
This wasn't only due to tariffs, but the trade war likely played a role in positioning Bitcoin as a hedge against global instability.
2. Supply Chain Disruptions and Mining Equipment
Tariffs on Chinese goods impacted the cost and availability of crypto mining hardware, most of which is manufactured in China (e.g., Bitmain ASIC miners). U.S.-based miners faced higher prices due to the import tariffs.
For example, in 2018, mining rigs were classified under tariff codes that made them subject to 25% duties, raising costs for U.S. mining operations.
3. U.S.–China Tensions Accelerated Crypto Interest in Asia
As trade tensions rose, some Chinese investors and companies reportedly increased interest in crypto as a way to diversify away from traditional finance, especially as the yuan weakened.
Summary:
Trump's tariffs didn’t hit crypto directly, but they:
Fueled economic uncertainty that made crypto more appealing
Raised costs for U.S. miners
Contributed to geopolitical conditions that encouraged adoption in some region
