š Overview: Trumpās Tariffs & Crypto Markets
1. Tariff Policy Updates
āLiberation Dayā tariffs began on April 2, 2025, hitting a wide range of goods (10ā50%, with up to 55% later on specific imports) .
These have expanded globally, covering China, EU, UK, Canada, Mexico, and othersāa steep escalation from his first term .
A U.S. court recently struck down these tariffs as exceeding presidential authority under emergency powers, blocking them pending appeal .
2. Immediate Crypto Market Reactions
Bitcoin and other cryptocurrencies fell quickly following the April tariff rollout: $BTC
dropped ~15% from $88.5K to $74.5K .
U.S. crypto stocks like Coinbase, MicroStrategy, and miners fell 6ā9% on tariff-driven sell-offs .
In the short term, tariffs sparked risk-off sentiment across marketsācrypto, tech stocks, and futures experienced volatility .
3. Medium-Term Trends & Analyst Views
Resilience & rebound: May and June saw recoveriesābitcoin retested $115Kā$120K as tariff threats eased .
Uncertainty risk: Analysts caution that continued tariff āsabre rattlingā without resolution could trap BTC in sideways or downward drift .
Dollar weakness tailwind: A softer $USDC
and expectations of Fed rate cuts in response to tariff-driven slowdowns are boosting risk assets like crypto and gold .
4. Long-Term Crypto Upside
Experts suggest that weakening U.S. dollar dominance could strengthen non-sovereign assets like bitcoin as digital alternatives .
The creation of a U.S. strategic crypto reserve and favorable regulatory moves under Trumpās administration are likely fueling institutional confidence .
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š Bottom Line for Crypto
Time Horizon Impact on Crypto
Short-Term Volatile; sharp drops during tariff shocks
Medium-Term Potential rebound if trade tensions ease
Long-Term Tailwinds: weaker dollar, crypto reserve, regulation
Key catalyst: The courtās recent injunction has lifted immediate tariff risk, easing short-term pressure .