President Trump’s signal of no further tariff pauses suggests a tougher trade policy, which could indeed reignite market volatility. Historically, tariffs have jolted markets by stoking inflation fears and risk-off sentiment, as seen in early April 2025 when $BTC dropped 10% and fell 12% $ETH after sweeping tariff announcements. The crypto market, despite its narrative as a hedge, often tracks macro assets like equities during such shocks, with Bitcoin’s correlation to the NASDAQ around 40% recently.
However, there’s evidence crypto hasn’t fully decoupled but shows resilience. Bitcoin held above key technical supports during April’s tariff tumult, signaling strong demand. Some analysts argue tariffs could boost Bitcoin long-term by weakening the dollar’s dominance, creating space for non-sovereign assets. Yet, short-term pain is likely, as tariffs disrupt global liquidity and hit risk assets.
My take: Tougher tariffs will likely spike volatility, with crypto still tethered to macro fears. But $ETH and BTC could see inflows if investors seek hedges against trade war fallout. #TariffsPause
