Trump Tariffs: What They Mean for Bitcoin and Why Crypto May Turn Bullish
President Donald Trump announced tariffs ranging from 10% for the U.K. to 49% for Cambodia, aiming to raise trillions for the U.S. economy. This has led to significant market uncertainty and losses, prompting speculation about the potential for cryptocurrencies as a safe haven. Cryptocurrencies, previously viewed as hedges against traditional assets, have shown increased correlation with stocks and bonds. Bitcoin is seen as a deflationary asset with predictable supply, attracting investors during economic uncertainty. Circle, a stablecoin issuer, is going public, and other companies like Ripple and Kraken are also considering IPOs. Bitcoin reached an all-time high of over $109,000 in January but has since retraced to around $80,000. Institutional interest in cryptocurrencies remains strong, with 89% of investors planning to increase exposure in 2025. Regulatory clarity has improved following the Financial Innovation and Technology Act, and the SEC has adopted a more positive stance towards cryptocurrencies. Trump announced a Strategic Bitcoin Reserve to position the U.S. as a "Crypto Capital of the World." Predictions suggest Bitcoin may reach new highs amid ongoing financial and political uncertainty.
