As an experienced investor who has witnessed multiple bull and bear markets, my first reaction to the recent tariff policies of the Trump administration is not panic, but excitement—because every macro upheaval is an opportunity for reshuffling in the crypto space. The impact of this tariff storm on cryptocurrencies looks like 'growing pains' in the short term, but a 'catalyst' in the long term.
1. Short-term: increased volatility, but don't get thrown off the bus
When the tariff policy was announced, Bitcoin plummeted 4.6% within an hour, and Ethereum dropped 5.7% simultaneously, spreading panic in the market. This is normal because:
(1) Risk assets under pressure: tariffs raise inflation expectations, and the Federal Reserve may maintain high interest rates, causing capital to flow from high-risk assets (like BTC) to safe-haven assets like the dollar and gold.
(2) Liquidity squeeze: When U.S. stocks crash, investors may sell cryptocurrencies to cover losses, leading to a chain reaction of declines.
But seasoned investors understand that such short-term fluctuations are actually buying opportunities. Just like when tariffs were first announced in February 2025, BTC dropped from $100,000 to $91,000, but then rebounded to $96,000. Markets always overreact, and real opportunities lie in the panic that follows.
2. Long-term: three major trends are favorable for the crypto space
(1) Inflation hedge demand: tariffs push up prices, and the narrative of Bitcoin as 'digital gold' returns. In the latter part of the 2020 trade war, BTC skyrocketed from a low of $20,000; history may repeat itself this time.
(2) Dollar credit crisis: The U.S. relies on tax increases to cover fiscal deficits, but the debt problem remains unresolved. In the long run, Bitcoin's attractiveness as a 'de-dollarization' tool will only increase.
(3) Policy dividends: The Trump administration is strongly promoting crypto-friendly regulations, such as the Bitcoin Strategic Reserve Act (freezing 200,000 BTC) and the legalization of stablecoins, injecting long-term confidence into the industry.
3. Strategies of seasoned investors
(1) Short-term: pay attention to the tariff details in April; if the market oversells, gradually accumulate BTC and ETH.
(2) Long-term: allocate anti-inflation assets (BTC), compliant stablecoins (USDC), and mining stocks (tariffs raise mining equipment costs, but larger mining farms have more obvious advantages).
(3) Hedging: pair with gold and U.S. Treasuries to reduce portfolio volatility.
Conclusion: Tariffs may cause short-term crashes, but in the long run, it serves as a 'stress test' for the crypto space. True seasoned investors do not run away in a storm but learn to surf the waves.
(Disclaimer: This article does not constitute investment advice, DYOR)
Do you think BTC can surge to $150,000 by the end of the year after this tariff shock? See you in the comments! 🔥
