Bitcoin in decline: what is the relationship with Trump's tariff increase?
In recent days, Bitcoin has recorded a considerable decline, a movement that coincided with the announcement of trade tariffs by Donald Trump. Although it may seem, at first glance, something distant from the crypto universe, the impact was quickly felt in the price of the #BTC .
The reason is that, despite its proposal as "decentralized money" and a store of value, the #Bitcoin is still treated by many investors as a risky asset.
When economic uncertainties arise — such as trade tensions or tariffs that may slow global trade — the appetite for risk decreases. This leads investors to migrate part of their capital to more stable assets, such as the dollar, government bonds, and gold.
Another factor that enhances this decline is the increasing correlation of Bitcoin with the stock market, especially after the creation of the #ETFs of #BTC .
If the atmosphere in the traditional market is negative, cryptocurrencies tend to follow the same path. And, when volatility increases, leveraged positions in the crypto market are liquidated in mass, further accelerating the downward movement.
Despite the immediate impact, some analysts point out that the effect of the tariffs may, in the medium and long term, favor Bitcoin. This is because, if the measures pressure the American economy or weaken the #dollar , the search for decentralized alternatives resistant to state monetary policy may gain strength.
Ultimately, Trump's "tariff increase" showed that Bitcoin, even being independent of governments, still dances to the tune of the global economy. But it also reinforced that, in times of uncertainty, its role as a financial alternative can become even more relevant.