Bitcoin in the Crosshairs: How Trump’s Trade War is Reshaping Crypto’s Future

As Bitcoin weathers the storm of President Trump’s erratic tariff policies, investors remain on edge. The crypto market took a sharp hit following the announcement of a 25% import tariff on Canada and Mexico, along with a 10% duty on China. Bitcoin plunged to $91,500 before recovering to $100,000, erasing $2.3 billion from the market in the process.

BitGalactic’s take? This is just the beginning. The interplay between global trade tensions, institutional adoption, and Bitcoin’s narrative as a hedge asset is setting the stage for a seismic shift in the crypto landscape.

Noelle Acheson: Bitcoin’s Fate Tied to the US Dollar

Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, believes the impact of these tariffs depends on their longevity. If the trade war is short-lived, risk assets like Bitcoin will rebound. However, if prolonged, Bitcoin could benefit as investors seek protection from local currency depreciation.

“The US dollar’s performance is critical,” she notes. “A weakening dollar would boost global liquidity, reigniting risk appetite and driving both Bitcoin and equities higher.”

Anthony Scaramucci: A Wild Ride with Trump at the Wheel

SkyBridge Capital CEO Anthony Scaramucci sees Bitcoin as a long-term winner, but acknowledges the turbulence ahead. “You have to sit for the full Trump buffet,” he quipped. With SkyBridge holding $1.4 billion in crypto and over 60% of Scaramucci’s personal wealth in Bitcoin, he’s betting big on digital assets.

Institutional adoption remains a crucial factor. “If banks gain the ability to custody Bitcoin and hold it on their balance sheets, it would be a game-changer,” he told the Financial Times. BitGalactic agrees—regulatory clarity and institutional entry could catapult Bitcoin into mainstream finance.

Mena Theodorou: Volatility is the Name of the Game

Mena Theodorou, co-founder of Coinstash, warns that volatility is far from over. “Tariffs of this scale typically hurt risk assets, including Bitcoin,” he told DL News.

Yet, Trump’s executive order establishing a US sovereign wealth fund, potentially incorporating digital assets, provides a glimmer of hope. This move, if executed, could further legitimize crypto in the eyes of institutional investors.

Kaiko Research: Market Sentiment is Unclear

Analysts at Kaiko suggest that crypto markets are in a state of uncertainty. Funding rates remain low, indicating indecisiveness among investors. Meanwhile, upcoming options expirations suggest that traders expect short-term volatility to subside.

But as BitGalactic points out, Trump’s unpredictability makes any forecast precarious. “He’s like a toddler testing his limits,” remarked Kaiko analyst Adam McCarthy. Crypto traders must brace for unexpected twists.

Jeff Park: The Macro Play for Bitcoin

According to Jeff Park of Bitwise, Trump’s strategy hinges on weakening the US dollar while avoiding high interest rates. By leveraging tariffs, he pressures other nations to reduce their dollar reserves. If this strategy works, Bitcoin stands to gain immensely.

However, if a full-blown trade war erupts, economic instability could lead to aggressive money printing. Historically, such monetary stimulus has fueled Bitcoin’s rise.

The BitGalactic Perspective

From a macro perspective, Bitcoin’s role as a hedge against inflation and currency devaluation is becoming clearer. The recent turmoil underscores why digital assets remain attractive in an era of economic uncertainty. Whether Bitcoin thrives in this new landscape depends on a combination of regulatory shifts, institutional involvement, and the broader geopolitical climate.

One thing is certain—Bitcoin is no longer just a speculative asset. It’s becoming a key player in the global financial system. And as the world braces for further trade tensions, the crypto market is poised for a transformative journey.