At the beginning of 2025, tariff policies returned to the forefront with Donald Trump's announcement of re-imposing significant tariffs on imports from China and other regions.
While traditional markets were unsettled and stocks declined, cryptocurrencies were at the center of the event, particularly Bitcoin. Does this mean more volatility from these tariffs? Or could it present an investment opportunity?

In this article, we detail how trade tensions and tariff policies can affect the cryptocurrency market, and why these conditions may be suitable for Bitcoin's rise.

First: Overview of Trump's tariff policies

During his previous presidency, Trump used tariffs as a tool of political and trade pressure, and he is doing it again at the start of his second term. The new tariffs target key sectors such as technology, electronics, and steel, raising concerns about a slowdown in global trade.

These policies affect the global economy as a whole, but they also have direct and indirect impacts on the cryptocurrency market.

Second: The U.S. dollar in jeopardy

When large tariffs are imposed, investors begin to worry about their impact on economic growth and the value of the dollar. As confidence in fiat currency wanes, many seek alternatives to preserve value, with Bitcoin leading the way.

Bitcoin is not linked to any government or monetary policy, which makes it attractive in times of political and economic instability.

Direct result:

Increased demand for Bitcoin as an alternative store of value to the dollar.

Third: Traditional markets vs. crypto

During political or economic crises, stocks typically decline due to concerns about slowing growth or weak profits. In contrast, cryptocurrencies sometimes benefit from this fear, especially when viewed as decentralized assets.

Indeed, during the early days of Trump's tariff announcement, a decline was observed in U.S. stock indices, while trading volumes in Bitcoin began to rise.

✅ Indicator: Increased activity in crypto during declines in traditional markets = Seeking a safe haven.

Fourth: The impact of tariffs on supply chains and technology

One of the largest categories affected by tariffs is electronics and semiconductors. These industries form part of the infrastructure that blockchain networks and mining centers rely on.

Nevertheless, the trend towards the decentralization of networks and the global distribution of mining centers has helped reduce these direct impacts.

On the other hand, rising technology costs may exert more pressure on emerging crypto companies, pushing some to merge or seek more efficient solutions.

Fifth: Bitcoin as a hedge against inflation and trade wars

Bitcoin has often been described as 'digital gold,' and this description becomes more realistic amid trade disputes. When traditional currencies weaken and commodity and service prices rise, investors turn to assets that are harder to control or print, such as gold... or Bitcoin.

✅ The reason? Bitcoin has a limited supply (only 21 million units) and is not subject to any central authority.

The current environment of inflationary pressures, trade tensions, and financial uncertainty is driving investors to seek long-term safety — which may significantly enhance Bitcoin's position.

Sixth: Institutional investor behavior

Institutional investors have become more present in the crypto market. With increasing talk about digital investment funds and broader regulatory adoption, institutions are beginning to allocate part of their portfolios to digital assets.

In an economically turbulent environment due to Trump's tariffs, these institutions may view Bitcoin as an asset equivalent to defensive stocks or bonds — but with potentially greater returns.

With the influx of institutional capital, liquidity increases, and random volatility gradually decreases.

Seventh: Is Bitcoin really a beneficiary of #TRUMP policies?

The legitimate question: Do Trump's policies help or harm Bitcoin?
The answer is not black and white, but it tends to lean towards Bitcoin being an indirect beneficiary.

Although there is no direct link between tariffs and crypto prices, the consequences of tariffs — such as a weakening dollar, declining markets, and increasing public anxiety — all favor Bitcoin.

According to market analyses, each previous geopolitical tension cycle has been accompanied by increased interest in Bitcoin, albeit with a delay.

Eighth: Future outlook

If Trump's trade policies continue, we may witness:

  • More volatility in global markets

  • Increasing confidence of individuals in digital currencies

  • A rush towards Bitcoin as a hedging asset

  • Faster adoption by financial institutions

However, caution should be exercised regarding negative scenarios such as strict regulations or trading bans, which may arise in response to the expansion of the cryptocurrency market.


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