#TrumpTariffs

President Trump’s 2025 “Liberation Day” tariffs—announced April 2 and implemented April 5–9—established a baseline 10% on all imports, with targeted 20–50% rates on 57 nations  . Those sweeping measures triggered a global equity sell‑off, marking the worst two-day drop since 2020.

Crypto’s initial reaction: Bitcoin and altcoins dropped ~5%–8%, with BTC dipping from ≈$88k to the low $80ks . Crypto‑related equities fared worse—Coinbase dropped ~7–8%, MicroStrategy ~6–8%, miners MARA, RIOT, Bitfarms fell ~5–9% . Reuters noted this broad risk‑off wave impacted both on‑chain and stock‑based exposure.

Why this happened: Tariffs raise inflation and suppress growth, reducing risk‑asset appetite—crypto included . The Fed held rates steady amidst rising inflation risks . Liquidity concerns and investor uncertainty triggered volatility across asset classes.

Medium‑term rebound: Following a 90‑day pause announced April 9, cryptos rebounded—Bitcoin climbed ~0.9% to ~$77,700, while altcoins like Ether and Solana also gained . Analysts credited renewed interest in crypto as a hedge against macroeconomic instability .

Long‑term outlook: Many experts remain optimistic. Some see tariffs weakening the U.S. dollar—creating space for BTC as an alternative store of value . Predictions range from $150k to $250k if the dollar lags and the Fed resorts to easing .

Summary: Trump’s aggressive tariff rollout triggered sharp, short‑term declines in crypto assets and equities, driven by risk aversion and inflation fears. Yet, the mid‑April pause and growing narrative of Bitcoin as a hedge sparked a rebound. Over the long term, prolonged dollar weakness and policy shifts could amplify crypto’s appeal—as an alternative monetary asset.