The imposition of heavy tariffs under the Trump administration has introduced new uncertainties for global markets, including cryptocurrencies.
With recent tariff hikes on imports from China to 34% and 25% on automobiles, investors are navigating a volatile environment in search of both risk and opportunity.
Tariffs typically fuel inflation and strengthen the U.S. dollar by increasing the cost of imported goods. A stronger dollar typically puts downward pressure on cryptocurrencies as traditional safe-haven assets attract investors. However, prolonged economic uncertainty could increase Bitcoin’s appeal as a store of value, especially if central banks respond with looser monetary policies.
“Trump’s tariffs have rattled global markets, and crypto is no exception. Bitcoin has fallen to $82,000, while Ethereum has fallen below $1,800,” said Rick Maeda, Research Analyst at Presto Research.
Options trading activity indicated a defensive stance among investors who were long across time frames. Despite this, implied volatility structures remained relatively stable, suggesting that the market is still evaluating the long-term impact.
Enmanuel Cardozo, Market Analyst at Brickken, said:
“Trump’s tariff announcement on April 2, 2025 caused Bitcoin to fall from $88,500 to $82,000 within hours. In the short term, this is fueling volatility as institutional investors continue to accumulate BTC while economic uncertainty pushes retail investors into safer investments like gold.
“The long-term impact could be in crypto’s favor, with JPMorgan’s survey showing 51% of institutional investors see inflation and tariffs as key market drivers. Tariffs could weaken the dollar’s dominance, making Bitcoin an attractive hedge against inflation.”
Cardozo also noted that disruptions in global trade could increase the adoption of stablecoins as an alternative to traditional cross-border transactions.
Bitget Wallet COO Alvin Kan stated:
“Trump’s tariffs could trigger stagflation, raise prices without economic growth, and undermine confidence in fiat currencies. If the dollar’s dominance wanes, demand for BTC could increase as investors look for decentralized alternatives. In a fragmented and protectionist world, Bitcoin is becoming more about protectionism than speculation.”
Bitget Research Chief Analyst Ryan Lee said the following on the subject:
“Trump’s tariffs, ranging from 10% to 49%, have led to panic selling, with ETH and SOL down around 6%. Meanwhile, stablecoin activity has increased as fear grips the market. Beyond the initial shock, these tariffs could further strain the US economy and increase inflation by 2-3% by Q2 2025.
“If economic conditions worsen, a weaker dollar and potential Fed easing could strengthen Bitcoin as an inflation hedge. Early accumulation trends support this theory, but altcoins could struggle unless they show strong fundamentals.”
*This is not investment advice.
