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Bitcoin World 2025-02-04 05:12:02

Analysts Say Trump’s Tariff Policies Could Boost Bitcoin Instead of Hurting It

Trump’s Tariff Policies Shake Markets, But Bitcoin Could Benefit Long-Term Over the weekend, Bitcoin (BTC) and the broader crypto market saw sharp declines as investors reacted to U.S. President Donald Trump’s proposed tariffs on imports from Canada, Mexico, and China . Bitcoin (BTC) fell 10% to $91,500 . Ethereum (ETH) and Solana (SOL) experienced steeper declines . However, analysts at Bernstein argue that while tariffs initially caused a risk-off sentiment , Bitcoin is likely to recover and trade based on its fundamentals once the market stabilizes. Why Analysts Believe Trump’s Tariffs Could Boost Bitcoin 1. Bitcoin’s Long-Term Fundamentals Remain Strong Bernstein maintains its $200K BTC price target for 2025 . Institutional adoption and spot Bitcoin ETFs continue to drive demand. U.S. financial institutions could soon offer crypto custody , following regulatory shifts. 2. Tariffs Could Weaken the U.S. Dollar According to Bitwise’s Jeff Park , Trump’s tariffs are: A strict move to weaken the U.S. dollar . Likely to lower long-term interest rates . Could drive Bitcoin higher as an inflation hedge . Historically, Bitcoin has benefited from monetary policy uncertainty , similar to gold and other alternative assets . 3. Institutional Investors Continue to Accumulate BTC Despite short-term volatility, institutions are increasing Bitcoin exposure . Spot Bitcoin ETFs have seen consistent inflows , reinforcing long-term bullish sentiment . Risks: Could Prolonged Tariffs Hurt Crypto? Bearish Arguments from Other Analysts: Extended tariffs could harm the U.S. economy , reducing risk appetite. A prolonged economic slowdown could lead to lower crypto demand . If Bitcoin remains correlated with stocks, it could face further downside volatility . Bullish Scenario: If the U.S. dollar weakens, Bitcoin’s store-of-value narrative could strengthen. Institutional adoption, combined with monetary policy shifts , may fuel BTC’s long-term growth. Conclusion While Trump’s tariff policies initially caused Bitcoin to drop , analysts at Bernstein and Bitwise believe that long-term fundamentals remain strong , and the U.S. dollar’s weakening could ultimately boost BTC prices . With institutional interest rising and Bitcoin ETFs expanding , BTC remains positioned for potential long-term gains , despite short-term market uncertainty . To learn more about the innovative startups shaping the future of the crypto industry, explore our article on the latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries.

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