#TrumpTariffs
The impact of the new Trump Tariffs on the cryptocurrency market, particularly $BTC, is complex, primarily affecting it indirectly through global economic uncertainty and directly through the costs of mining hardware.
While President Trump's administration has generally adopted a pro-crypto regulatory stance (promising to make the U.S. a "crypto heaven"), his tariff policy has created significant market volatility.
📉 Indirect Impact: Risk Sentiment and Macroeconomics
The primary effect of the tariffs is a rise in global economic uncertainty and inflation, which typically pushes investors away from "risk assets" like Bitcoin in the short term.
Increased Volatility: Whenever major new tariffs are announced, like the proposed 10% to 60%+ tariffs on imports from China and other partners, the stock market and other risk assets often decline. Bitcoin frequently follows this trend, resulting in sharp, short-term price drops and large liquidations.
Example: After a major tariff announcement in October 2025, Bitcoin experienced a significant sell-off, wiping out billions in market value, despite the overall bullish sentiment earlier in the year.
Inflation Concerns: Tariffs increase the cost of imported goods, fueling general inflation. This makes the Federal Reserve less likely to cut interest rates, which typically hurts non-yielding, speculative assets like Bitcoin
