Key Effects of Trump’s Tariffs on $BTC
1. Market Risk-Off Sentiment
When Trump announced sweeping new tariffs (e.g., 10% on all imports + steeper reciprocal duties), investors freaked out — risky assets like BTC saw sharp sell-offs.
2. Large Liquidations
The tariff shock triggered mass liquidations across the crypto market: According to Cointelegraph, $8–10 billion in long positions were wiped out.
3. Inflation and Dollar Pressure
Higher tariffs fuel inflation fears. Some analysts argue that as the U.S. dollar weakens under inflationary pressure, Bitcoin could benefit over the long run — seen by some as a hedge.
4. Volatility from Policy Reversals
The back-and-forth nature of the tariff policy adds volatility. For example, when Trump paused some tariffs for 90 days, crypto markets bounced.
5. Legal Relief = Potential Rally
A U.S. trade court blocked major parts of Trump’s tariff plan in May, which some analysts believe could spark a big bullish move in Bitcoin — as that legal win removes a key macro overhange.
Big Picture (Experienced Insight)
Short-term pain: The tariff announcements create macro uncertainty, pushing investors away from “risk” assets like crypto.
Long-term opportunity: If inflation really picks up and the dollar weakens, Bitcoin could reclaim its role as a store of value or “digital hedge.”
Watch closely: Key drivers now are not just crypto fundamentals — macro policy moves (tariffs, court decisions, inflation) are becoming central to BTC’s price trajectory.
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