#BitcoinWithTariffs Bitcoin and Tariffs Under Trump's Presidency
Donald Trump's tariffs have sparked debate about their potential impact on Bitcoin. Here's a breakdown¹ ² ³:
- *Short-term Impact*: Trump's tariffs led to a decline in Bitcoin's price, dropping below $100,000. The crypto market experienced a significant downturn, with a $300 billion loss in market value.
- *Long-term Potential*: Some analysts believe Trump's tariffs could benefit Bitcoin in the long run. A weakening US dollar could lead to increased demand for alternative assets like Bitcoin.
- *Tariff Details*: Trump's administration imposed a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China.
Expert Opinions
- *Jeff Park (Bitwise)*: Believes Trump's tariffs will send Bitcoin prices "violently higher" due to a weakening US dollar and lower yields on US government securities.
- *Dan Gambardello (Crypto Capital Venture)*: Doesn't think Trump's tariffs will end the bull cycle, citing BlackRock's continued accumulation of ETH and BTC.
- *Adam Cochran (Cinnaeamhain Ventures)*: Warns that Bitcoin's correlation with global markets means an economic squeeze will cause pain across the board.
Market Trends
- *Bitcoin's Price*: Fluctuated after Trump's tariff announcement, with some analysts predicting a potential rebound.
- *US Dollar Index (DXY)*: Has shown strength in the short term, potentially impacting Bitcoin's price.
- *Inflation Concerns*: Trump's tariffs could lead to increased inflation, causing investors to seek refuge in risk-off assets.