Donald Trump's trade policies, including his tariffs, have caused significant shifts in the global economy. These measures have affected not just traditional markets, but also the cryptocurrency sector.
Beginning of the Tariff War
Trump's recent announcement of a 25% tariff on Canadian and Mexican goods, along with a 10% duty on Chinese imports, has led to retaliatory measures from these countries. This points to a full-blown trade war with serious implications for the global economy.
Impact on Cryptocurrency Market
Cryptocurrency markets have historically been sensitive to global economic changes. Trump's tariff announcement led to a dip in the prices of major cryptocurrencies like Bitcoin and Ethereum. Bitcoin's value dropped from a peak of $107,000 in January 2025 to about $91,000. Ethereum also experienced a decline, reaching as low as $2,320, its lowest since September 2024.
Significance of Tariffs for Cryptocurrencies
Tariffs can lead to increased inflationary pressure as goods become more expensive. Central banks might raise interest rates, which would strengthen the U.S. dollar and potentially lower Bitcoin prices. This uncertainty has led many investors to move away from riskier assets like cryptocurrencies.
Donald Trump's tariff policies significantly impact cryptocurrency markets. While the short-term effects are negative, some experts see a potential long-term benefit for cryptocurrencies like Bitcoin, especially if the trade war weakens the U.S. dollar.
