#BitcoinWithTariffs Bitcoin's relationship with tariffs is complex. Here's a breakdown ¹:

- *Direct Impact*: Tariffs don't directly affect Bitcoin since they're imposed on goods, not cryptocurrencies. Bitcoin's fungibility means a coin mined in one country is identical to one mined in another.

- *Indirect Impact*: However, tariffs can influence Bitcoin's price through market sentiment and economic uncertainty. When tariffs lead to economic instability, investors might sell risk assets like Bitcoin, causing prices to drop.

- *Mining Hardware*: Tariffs on imported goods, including mining hardware, can increase costs for miners in countries like the US. This might slow down new coin production, potentially driving up Bitcoin's price due to reduced supply.

*Recent Examples:*

- In February 2025, Trump's tariff announcements led to a 12.19% price drop in Bitcoin, which fell below $100,000.

- In April 2025, a false rumor about a 90-day tariff pause caused a $2.4 trillion swing in the US stock market, impacting Bitcoin's price ² ³.

*Investor Sentiment:*

- Trump's tariff policies can create panic in the market, flipping investor confidence from bullish to bearish.

- Some analysts see potential for Bitcoin to benefit if the US dollar weakens due to trade tensions, positioning it as a digital gold or store of value ⁴.