Could Bitcoin Be a Hedge Against US Tariffs?

[CharlieH]

 

If you own or plan to invest in Bitcoin, you might be wondering how US tariffs could impact its value.
Market analyst Inky Cho from Exness highlights that President Donald Trump’s return to office has brought significant political and economic shifts. Among them, a 25% tariff on Canadian and Mexican imports and a 20% tariff on Chinese goods have sparked debate.
At the same time, Trump has pledged to support cryptocurrency through deregulation. His executive order established a Strategic Bitcoin Reserve and Digital Asset Stockpile, holding crypto assets seized by the government. White House AI and crypto advisor David Sacks likened this reserve to a "digital Fort Knox."

Tariffs and Bitcoin’s Market Response
Trump’s crypto involvement has raised concerns. The launch of meme-coins $TRUMP and $MELANIA before his inauguration drew industry criticism. Still, tariffs could indirectly benefit Bitcoin. If tariffs drive inflation higher, consumers may rush to spend before price hikes take effect. A similar trend occurred in December 2024, when inflation data pushed Bitcoin up 2%, reaching $98,000.

 

 

 

However, Bitcoin’s growth-driven nature means it remains vulnerable to market fear. A massive crypto sell-off in March 2025 saw Bitcoin hit a four-month low as traders scrambled for liquidity. Trump's warnings of a looming recession further spooked markets, temporarily pushing Bitcoin lower before a modest recovery.

Bitcoin’s Potential as a Safe Haven

Bitcoin maintains a 40% correlation with NASDAQ, significantly lower than its 72% peak. However, history shows it can break away and act as a safe-haven asset during economic turmoil, much like gold. Unlike Ethereum and other altcoins, Bitcoin’s dual nature—both volatile and a potential hedge—positions it uniquely amid tariff-induced uncertainty.

What’s Next for Bitcoin?

US tariffs could lead to inflation, slower growth, and short-term volatility in Bitcoin. However, if tariffs cause deeper economic instability, Bitcoin’s appeal as a hedge could grow. Traders should monitor policy decisions closely to effectively navigate market shifts.

 

 

Sponsored - Original article by The Thaiger

[CallumWK]

 

[CharlieH]

With the instability due to Tarrifs etc I dont see GOLD going anywhere but UP UP UP 

[CallumWK]

4 minutes ago, CharlieH said:

With the instability due to Tarrifs etc I dont see GOLD going anywhere but UP UP UP 

 

Exactly the point of my reply, but BTC went down during the same period, so clearly no hedge