Bitcoin (BTC) has experienced significant volatility amid the Trump administration's new tariff policies, initially dropping 5.4% as markets reacted to economic uncertainty . While tariffs do not directly target Bitcoin—since it is a decentralized asset not tied to trade flows—indirect effects are substantial. Higher tariffs on imported mining hardware could raise costs for U.S. miners, potentially slowing production, though this may drive BTC prices up due to reduced supply . Meanwhile, Bitcoin's correlation with traditional markets has intensified; it initially plunged alongside equities but later stabilized near $79,000, showing resilience as a potential hedge amid stagflation fears . Analysts debate whether BTC will decouple as "digital gold" or remain tied to risk assets, especially if tariffs trigger a prolonged economic downturn . Long-term holders may benefit, as scarcity persists regardless of trade policies .
