In early 2025, global trade policies came back into the spotlight after Donald Trump, during his latest term, announced a series of new import tariffs against China and several other key trading partners. This policy raised concerns about a resurgence of the global trade war, a situation that often has significant impacts on the global financial markets โ including the cryptocurrency market.
Although these tariff policies briefly caused a drop in Bitcoin prices, recent trends show that more investors view Bitcoin as a safe-haven asset, especially when economic uncertainty and the value of the US dollar begin to waver.
Tariffs and Trade Wars: Why They Matter for the Crypto Market?
1. Economic Uncertainty Triggers Asset Shifts
In unstable geopolitical situations, investors tend to move their funds from high-risk assets to safe-haven assets. Typically, this means gold, US government bonds, or currencies like the Swiss Franc. However, in the last decade, Bitcoin has started to emerge as a new alternative โ often referred to as digital gold โ due to its decentralized nature and limited supply.
With the trade war between the US and China reigniting, many market participants are concerned about potential inflation, a slowdown in global trade, and supply chain disruptions. In this context, Bitcoin could gain traction as it is seen as a hedge against fiat currency instability.
2. Tariffs Pressure the US Dollar, Favor Bitcoin
Tariff policies generally have a negative long-term impact on the US dollar. When the US imposes tariffs on other countries, the common retaliation is tariff retaliation, which can lead to a slowdown in exports and economic growth. If these conditions worsen, investors may lose confidence in the strength of the dollar, ultimately pushing them towards assets like Bitcoin.
As reflected in early 2025 data, the US dollar index (DXY) shows a decline after tariff policies were announced, while Bitcoin began to rebound following the initial correction. This supports the narrative that Bitcoin could potentially act as a hedge against the depreciation of the USD.
Binance Listing: (Code: K7RNV5MZ)
Why is Bitcoin Often Called Digital Gold? $BTC
Bitcoin has several key characteristics that make it similar to gold in the macroeconomic context:
๐ธ Limited supply โ Only 21 million BTC will ever exist
๐ธ Not dependent on government or central bank policies
๐ธ Easily transferable and stored digitally
๐ธ Increasingly accepted globally as a store of value
In the context of the trade war, where the value of fiat currencies can be disrupted and stock markets become volatile, investors view Bitcoin as a refuge from uncertainty.
Risk and Volatility: Bitcoin is Still Not Stable
While many analysts equate Bitcoin with digital gold, it is important to note that Bitcoin is still very volatile compared to traditional assets. When Trump's tariff announcement first emerged, the price of Bitcoin actually dropped more than 5% in a single day before starting to recover. This indicates that the crypto market still reacts emotionally to macroeconomic news.
However, the main difference is that after the initial reaction, the price of BTC tends to stabilize and start to rise, along with the growing narrative that Bitcoin can be an alternative store of value amidst geopolitical turmoil.
Impact on Altcoins and the Entire Crypto Market
The effects of the trade war are felt not only by Bitcoin but also by altcoins and other sectors in the crypto ecosystem. For example:
๐น Stablecoins like USDT and USDC are increasingly used in countries affected by local currency depreciation
๐น Blockchain-based commodity tokens (like tokenized gold) are gaining renewed interest from conservative investors
๐น Decentralized Finance (DeFi) could be a more open investment alternative that does not rely on government policies
However, altcoins are generally more sensitive to Bitcoin fluctuations. If BTC experiences a sharp correction due to escalating trade tensions, altcoins could fall even further.
Conclusion: How Should Investors React?
Trump's tariff policies and the potential global trade war in 2025 serve as a reminder that geopolitics remains an important factor in cryptocurrency price movements. In this situation, here are some strategies that investors might consider:
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Diversification of crypto and non-crypto portfolio
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Keep up with macroeconomic and geopolitical developments
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Use stablecoins to stabilize value when the market is volatile
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Focus on assets with strong narratives like BTC as a store of value
Disclaimer: This article is intended for education and is not financial advice. Always conduct personal research before making investment decisions.
