With the American elections approaching and former President Donald Trump returning to the political spotlight, financial markets are on the lookout for any potential changes in economic and trade policies. Among the key issues drawing attention in this context are: **the relationship between Trump's tariff policies and the future of digital assets, primarily cryptocurrencies**.
Trump and cryptocurrencies: A fluctuating stance that stirs controversy
Donald Trump's stance on cryptocurrencies has long been controversial. In 2019, he stated that he is 'not a fan of Bitcoin and cryptocurrencies', considering them highly volatile assets used for illegal activities. However, the stance has partially changed in recent years, especially after announcing the release of a series of non-fungible tokens (NFTs) under his personal brand, which was interpreted as an indirect acknowledgment of the importance of the decentralized digital economy.
Protectionist policies and tariffs: Indirect catalysts for the rise of crypto
Trump's economic approach relies on the principle of 'America First', which involves imposing high tariffs on imports from countries like China. These policies often lead to disruptions in supply chains and rising inflation rates, which directly affect traditional financial markets.
In such a climate, investors seek alternative assets that are more resilient to volatility, such as gold and cryptocurrencies. Data indicates that periods of geopolitical tension or high inflation typically see an increase in interest in Bitcoin as a hedge asset.
The political landscape and its impact on the regulatory environment for crypto
Although the Trump administration was not known for directly supportive policies for cryptocurrencies, his weak stance on regulating this sector compared to political rivals may open the door for innovation if he is elected again. This raises questions about the future of legislation governing digital assets, especially amid rising tensions between financial innovation and regulatory compliance requirements.
Analytical summary
Past experiences show that the economic policy of the United States — especially under a protectionist administration — can contribute to accelerating the shift towards a digital and decentralized economy. With Trump's potential return to power, cryptocurrencies will remain part of the economic and geopolitical equation, either directly through regulation or indirectly through the macroeconomic effects on investor behavior.
