With the announcement by President Donald Trump's administration of new tariffs on imported goods from many countries, his decision had a significant impact on cryptocurrency markets, such as Bitcoin. On April 2, 2025, Trump announced a set of tariffs affecting many countries, including China, Canada, and Mexico, which was dubbed "Liberation Day." This decision not only affected traditional markets like stocks but also had a noticeable impact on the cryptocurrency market.
Where Bitcoin prices fell by 4% the following day, with the cryptocurrency market losing about $180 million, equivalent to a 6% drop in its total value to $2.75 trillion.
The impact of tariffs on the cryptocurrency industry
The tariffs imposed by Trump have significant implications for many aspects of the cryptocurrency market. Among the most notable of these effects is their impact on mining operations and the development of blockchain technologies, in addition to the availability of liquidity in the market. Tariffs could disrupt mining operations in some countries that rely on imported raw materials or electronic devices affected by these tariffs. These measures are also expected to impact the development of blockchain technologies in some markets that were collaborating with targeted countries.
The impact of tariffs on the US dollar and Bitcoin
Talk of the impact of tariffs also points to potential changes in the status of the US dollar in global markets. The imposition of tariffs may weaken the global dominance of the US dollar, potentially opening the door for Bitcoin as a possible alternative to traditional currencies.
Many experts, such as Omid Malkhan, an assistant professor at Columbia Business School, believe that Bitcoin may establish itself as "digital gold" in markets experiencing economic volatility. Investors may seek Bitcoin as a safe haven instead of the dollar, which may face pressures due to tariffs.
In the same context, Zach Pandl, Head of Research at Grayscale, believes that tariffs will contribute to weakening the role of the US dollar, opening the door for new opportunities for non-sovereign assets like Bitcoin. Pandl believes that these tariffs could accelerate Bitcoin's transformation into a globally recognized financial instrument, as institutional investments in it gradually increase.
Economic challenges in the short term
While some experts believe that Bitcoin will benefit from these tariffs in the distant future, the reality on the ground indicates that markets will face challenges in the short term. Many analysts see that "negative sentiment" (Risk-Off Sentiment) dominates the market, pushing traders and investors away from volatile assets like cryptocurrencies and tech stocks. This is illustrated by the decline in stock markets, where the Nasdaq 100 index fell by 3.7% within 24 hours, highlighting the general concern over the impact of tariffs on high-risk investments.
Matheus Kara, CEO of the Ari10 digital currency payment platform, believes that investors should accept that "certainty has been achieved now" following Trump's announcement of the tariffs. He adds that the biggest risk was the uncertainty about future policies, whereas now investors can make decisions based on new facts.
Nevertheless, some expect that investors will turn to safer assets such as US bonds and dollar reserves in the coming period.
Future impacts on liquidity
On the other hand, some analysts believe that the market will face more problems in the future if the current trend of reducing liquidity continues. According to expert Arthur Hayes, founder of BitMEX and CEO of Maelstrom, tariffs could lead to a decrease in dollar exports, which may negatively affect foreigners' ability to purchase US bonds. Ultimately, this will force the US Federal Reserve to provide more support in the form of quantitative easing, which could enhance the value of Bitcoin in the markets.
How will Federal Reserve policies affect Bitcoin?
Many analysts expect the US Federal Reserve to take steps to ease monetary policy in the coming months, which could have a positive impact on Bitcoin.
According to forecasts from Swiss bank UBS, the US Federal Reserve is expected to cut interest rates by about 75 to 100 basis points in the second half of 2025.
Such interest rate cuts indicate a loosening of monetary policy, which makes assets like Bitcoin more attractive to investors.
Future predictions for Bitcoin
While markets remain tense in the short term, there is significant optimism regarding Bitcoin in the long run.
Many analysts expect Bitcoin to surpass major resistances like $87,000 and $92,000, reaching higher levels.
In fact, some believe that Bitcoin could reach $150,000 in the near future if demand from institutional investors continues.
Conclusion
Although the tariffs imposed by Trump have caused volatility in cryptocurrency markets in the short term, there is strong optimism regarding Bitcoin's potential in the long run. As pressures on the US dollar increase and the possibility of it becoming a less stable currency in the future looms, Bitcoin may be the digital alternative that investors are looking for.
As the impact of economic policies continues on global markets, Bitcoin may continue its ascent and establish itself as a reliable asset in the financial world.
