#TariffsPause
Impact on the Digital Currency Market
When tariffs were announced, such as President Donald Trump's proposal to impose a 50% tariff on imports from China in early April 2025, the digital currency market experienced a sharp decline. Bitcoin (BTC) dropped to 74,500 USD, Ethereum (ETH) lost more than 20% of its value, and many other altcoins also suffered significantly due to investors' risk aversion. Tariffs increase trade costs, create inflationary pressure, and reduce demand for high-risk assets like digital currency, which often correlate with the stock market.
However, when Trump announced a 90-day suspension of tariffs (on April 9, 2025, except for China), the digital currency market quickly recovered. Bitcoin rose 7.6% above 80,000 USD, while Ethereum and other tokens like Solana and Chainlink recorded increases of 14-23% within just 24 hours. This suspension alleviated concerns about economic recession and restored confidence in high-risk assets.
In the long term, some experts believe that if tariffs weaken the role of the USD, Bitcoin could become the “digital gold” and benefit as an inflation hedge. However, the cost of mining digital currency could increase if tariffs are imposed on technology components from China, affecting the profits of miners.
In summary, #TariffsPause provides short-term stability for digital currency, but the market remains sensitive to trade policies. Investors need to closely monitor tariff developments and macroeconomic impacts to make informed decisions.