Bitfinex expert Jag Kooner expressed that ongoing tariff risks could negatively impact Bitcoin in the short term.
Impact of Tariffs on Bitcoin
According to Jag Kooner, Bitcoin is facing pressure from changing US trade policy. He noted that new tariffs might trigger traditional risk-off reactions such as equity weakness and dollar strength. However, unlike past cycles, the cryptocurrency now enjoys structural ETF support and a sovereign hedge narrative.
Institutional Support and ETFs
Kooner also emphasized that Bitcoin has advantages it lacked in previous cycles, particularly growing institutional adoption and increasing ETF flows. These developments might make BTC more resilient to geopolitical uncertainty. "New US tariffs would likely trigger classic risk-off reflexes with equity weakness, dollar strength. But unlike past cycles, crypto now enjoys structural ETF support and sovereign hedge narrative," he stated.
Upcoming Catalysts for Bitcoin Growth
According to Kooner, in addition to inflation and trade concerns, traders will be watching for regulatory developments, especially those related to the upcoming GENIUS Act. He mentioned that Bitcoin's ascent towards all-time highs is anchored by consistent ETF flows and strong institutional interest. "The upcoming catalysts like legislative clarity, ETF innovation, tariff news, and inflation prints serve as potential accelerants," he added.
Bitcoin, supported by growing institutional interest and successful ETF backing, is in an interesting position despite potential short-term risks associated with new tariff policies.
