#TrumpTariffs Could Weigh on Bitcoin Prices
Today, U.S. President Donald Trump announced new reciprocal tariffs, including a 25% levy on auto imports and broad duties on goods from China, Canada, and Mexico. While aimed at reducing the U.S. trade deficit and boosting domestic manufacturing, these measures may trigger inflation and a broader risk-off sentiment in global markets.
Potential Impact on Bitcoin:
• $BTC and other risk assets could decline, as seen in March when it dropped from $105,000 to $92,000 after similar tariffs were imposed.
• Trading firm QCP Capital warns that affected nations are likely to retaliate rather than concede, leading to further market uncertainty.
• Countries like China, Japan, and Korea are exploring deeper regional trade cooperation in response.
Inflation and Shift to Safe Havens:
• Higher import costs could drive inflation, pushing investors toward traditional safe-haven assets like gold (which hit $3,150 per ounce) and U.S. Treasuries.
• Despite being dubbed “digital gold,” Bitcoin remains highly correlated with stocks and has yet to prove itself as a strong inflation hedge.
• The February 2025 crypto crash, triggered by earlier tariff announcements, underscores Bitcoin’s vulnerability in uncertain macroeconomic conditions.
Overall, the market remains on edge as investors assess the impact of Trump’s trade policies and potential global economic shifts.
