Why are President Trump's decisions important?

When Trump imposes high tariffs, economic uncertainty is generated. This typically leads to declines in risk markets, including cryptocurrencies, which in response tend to lose between 4–15% in a few days.

Moreover, tariffs increase the cost of importing raw materials and hardware for crypto mining, reducing profitability and putting downward pressure on the Bitcoin network.

On the other hand, tariff tensions can destabilize the traditional economy and weaken the dollar. This can encourage investors to seek cryptocurrencies as a hedge, boosting Bitcoin in the long term.

There is also an indirect effect: tariffs can trigger inflation, which often leads the Federal Reserve to cut rates. This scenario usually favors cryptocurrencies#TrumpTariffs