Bitcoin and other cryptocurrencies have experienced notable volatility in response to Trump's tariff policies. #BTC Bitcoin's price dropped from over $109,000 to around $107,970 after the announcement of 25% tariffs on Japan and South Korea, a 0.79% decline.[8] Similarly, after Trump's initial plans to impose tariffs on Canada, Mexico, and China, Bitcoin fell from approximately $105,000 to $92,000 before partially rebounding.[6] Other cryptocurrencies, such as Ethereum and Solana, also saw declines of 1.5% to 2%.[8] This reaction is attributed to increased risk aversion among investors, who tend to move away from volatile assets like crypto during periods of global economic uncertainty.[8]
The Trump family's growing involvement in the cryptocurrency space adds another layer of complexity. Trump Media and Technology Group, the parent company of Truth Social, announced plans to raise $2.5 billion to create a "Bitcoin treasury," further transforming the company into a crypto holding entity.[7] Additionally, the Trump family has other crypto ventures, including a meme coin, a Bitcoin mining firm (American Bitcoin), and a stablecoin through World Liberty Financial.[7] Some economists and ethics watchdogs suggest that Trump's policies, particularly the tariffs, could weaken the U.S. dollar, which might inadvertently benefit cryptocurrencies by making them seem more stable or attractive as alternative investments.[7] This creates a potential conflict of interest, as Trump and his family stand to gain from an industry that he, as president, is responsible for regulating.[7]
