The introduction of heavy tariffs under the Trump administration has ushered in a new chapter of uncertainty and opportunity for the cryptocurrency market, which tends to fluctuate in tandem with changes in the global economy.
Tariffs, by design, increase the cost of imported goods, often leading to higher inflation, shifts in supply chains, and fluctuations in currency valuations. A stronger U.S. dollar—driven by tariff-induced trade imbalances—might initially pressure crypto prices downward as investors flock to traditional safe havens.
However, prolonged economic uncertainty could enhance bitcoin’s appeal as a store of value, especially if central banks respond with loose monetary policies. Here’s how crypto traders and market watchers are approaching the coming months—largely expecting muted price action in the near term but bullish in the medium to long term.
Insights from Industry Experts
Rick Maeda, Research Analyst at Presto Research
Trump’s tariff increases—jumping to 34% on China and 25% on cars from a baseline of 10%—have unnerved global markets, and crypto has not been exempt from this turmoil. Bitcoin recently sold off to around $82,000, while Ethereum faced a sharper dip below $1,800.
Options flow indicated put buying across various tenors as traders hedged against further downside, yet implied volatility term structures held relatively steady. The cryptocurrency market continues to be haunted by Trump’s trade policies; it experienced similar shocks earlier this year when tariffs on Mexico and Canada were floated. Without a strong intrinsic narrative, the asset class remains tethered to macroeconomic forces, with its macro beta keeping it closely aligned with trade war developments. A prolonged trade war could continue to batter crypto, as it is still regarded as a risk asset rather than the ‘digital gold’ it was once thought to be.
Enmanuel Cardozo, Market Analyst at Brickken
The recently proposed tariffs, which were announced on April 2, 2025, are stirring up significant activity in the crypto industry. In a matter of just four hours, Bitcoin fell from approximately $88,500—where it was flirting with the $90,000 mark—to around $82,000.
In the short term, these tariffs are contributing to a lot of volatility within a mostly sideways consolidation zone, as economic uncertainty drives retail investors toward safer bets like gold or traditional investment vehicles while institutional investors continue to accumulate Bitcoin. According to a JPMorgan survey, 51% of institutional traders identify inflation and tariffs as primary market influences this year. Yet, looking beyond immediate turbulence, there’s potential upside for crypto in the long run.
These tariffs could weaken the dollar’s dominance by making imports pricier, therefore positioning Bitcoin as a key hedge against inflation. As global trade becomes increasingly complex, crypto’s utility for cross-border transactions could gain traction, especially as stablecoins are poised to serve as a workaround for tariff barriers, a trend already showing promise with government-backed stablecoin adoption.
Alvin Kan, COO at Bitget Wallet
The potential for Trump’s tariffs to trigger stagflation—rising prices without growth—raises fundamental questions about confidence in fiat currencies, particularly the U.S. dollar. As capital seeks refuge from inflation and trade war uncertainties, Bitcoin stands out as a neutral, decentralized hedge. Should the dollar’s dominance continue to erode amidst increased volatility, demand for BTC could surge quickly.
In a fragmented, protectionist landscape, Bitcoin’s narrative is shifting from speculation to preservation, leading savvy traders to adjust their strategies accordingly.
Augustine Fan, Head of Insights at SignalPlus
While trade partners have promised retaliation, the cross-asset landscape has experienced a large risk-off movement, resulting in a drop for Bitcoin that mirrors movement seen in U.S. equities, though BTC has demonstrated relative strength by remaining above the $80,000 threshold. The overall sentiment is bolstered by a weaker dollar and a stronger gold market, providing Bitcoin with a brief flight-to-quality response amidst the turmoil.
A statement from Secretary Bessent attributing the sell-off to a ‘Mag-7 problem’ added to negative sentiment. With the prevailing risk-off mindset, it is hard to envision Trump reversing course following such an aggressive stance, implying that U.S. assets are likely to struggle with tangible economic challenges in the near future.
Ryan Lee, Chief Analyst at Bitget Research
Trump’s unexpectedly harsh tariffs—together with rates from 10% to 49% on imports—may have ignited a panic-driven sell-off across various markets, including Ethereum and Solana, which saw drops of around 6%. As a result, fear has pushed many to shift toward stablecoins.
These tariffs threaten the U.S. economy and could subsequently ripple into crypto markets. Higher import costs—especially from key partners like China—may accelerate inflation, with some forecasts suggesting a 2-3% increase in CPI by Q2 2025 if trade wars escalate. Concurrently, the Atlanta Fed’s GDPNow estimate projects a 2.8% decline in GDP for Q1 2025, driven by faltering consumer spending and business investment.
A weakening dollar coupled with potential Fed easing could bolster Bitcoin as a hedge, with early signs of accumulation emerging. Yet altcoins may require stronger fundamentals to sustain long-term growth.
To read more on this subject, please refer to the article: Why Trump’s Tariffs Could Actually be Good for Bitcoin.
