#BitcoinWithTariffs Navigating the Intersection of Trade Policy and Cryptocurrency

In April 2025, the cryptocurrency market experienced significant volatility following U.S. President Donald Trump’s announcement of new tariffs. The crypto sector lost nearly $500 billion during the first week of April, with Bitcoin plunging from $86,000 to $74,000. Despite this turmoil, several crypto hedge funds managed to remain profitable. Eltican Asset Management recorded a 1% gain month-to-date as of April 9, while Fasanara Digital achieved 0.5% gains in April. 

Interestingly, U.S. stock indexes experienced higher volatility than Bitcoin over a recent 30-day period, driven by intense investor reactions to rapid developments surrounding U.S. tariffs. On April 10, the Nasdaq Composite’s 21-day annualized rolling volatility reached 59.8%, surpassing Bitcoin’s 30-day volatility of 46.4%. Analysts attribute this convergence to multiple factors, including the direct economic impact of tariffs on company profits and consumer confidence, unlike Bitcoin, which remains unaffected by such policies. 

In a strategic move, the Trump administration is exploring the use of tariff revenue to build a strategic Bitcoin reserve. Bo Hines, Executive Director of President Trump’s Council of Advisers for Digital Assets, stated that the administration aims to acquire Bitcoin in budget-neutral ways that don’t cost taxpayers. This initiative includes collaboration between various government departments to develop Bitcoin acquisition strategies.  

As the global economy grapples with the implications of new tariffs, Bitcoin’s role as a decentralized, non-sovereign asset becomes increasingly significant. Its resilience amidst traditional market fluctuations underscores its potential as a hedge against economic instability.