Trump’s tariffs affect the crypto market by creating economic uncertainty and increasing fear in traditional markets. When tariffs rise, global trade slows down, which can lead to inflation or recession concerns. In the short term, this often causes a sell-off in risk assets, including crypto, as investors move to safer places like cash or bonds. However, over time, crypto can benefit. If the U.S. dollar weakens due to trade pressure or the Federal Reserve cuts interest rates to support the economy, investors may turn to Bitcoin and other cryptocurrencies as a hedge. So, while Trump’s tariffs may cause short-term drops in crypto prices, they can also drive long-term interest in decentralized assets like Bitcoin, especially during economic instability or inflation fears.
