Trump’s Tariffs & Crypto Markets
1. Tariff Policy Updates
“Liberation Day” tariffs began on April 2, 2025, hitting a wide range of goods (10–50%, with up to 55% later on specific imports).
These have expanded globally, covering China, EU, UK, Canada, Mexico, and others—a 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 crypto currencies 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 6–9% on tariff-driven sell-offs .
In the short term, tariffs sparked risk-off sentiment across markets—crypto, tech stocks, and futures experienced volatility.
3. Medium-Term Trends & Analyst Views
Resilience & rebound: May and June saw recoveries—bitcoin retested $115K–$120K as tariff threats eased.
Uncertainty risk: Analysts caution that continued tariff “sabre rattling” 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 Trump’s administration are likely fueling institutional confidence.
📈 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 court’s recent injunction has lifted immediate tariff risk, easing short-term pressure.