The Trump Tariff Effect on Bitcoin Prices
The Trump Enigma: A Market Wildcard
Donald Trump’s presidency was a rollercoaster, and his policies, especially tariffs, sent shockwaves through various markets, including the cryptocurrency sphere. This report delves into how Trump’s tariff announcements influenced Bitcoin prices and the broader crypto market.
Trump’s Tariffs: A Bitcoin Price Rollercoaster
The February 2019 Tariff Pause
In February 2019, Trump announced a 30-day pause on Canada and Mexico tariffs, triggering a Bitcoin price dip below $9,300. The market rebounded shortly after, indicating a direct correlation between the tariff announcement and Bitcoin’s price movement [1].
The Persistent Chinese Tariffs
While the Canada-Mexico tariff pause had a temporary impact, the ongoing Chinese tariffs continued to put pressure on the crypto market. In response, Bitcoin prices dipped below $8,000 [2].
“Liberation Day” Tariffs: A Market Crystal Ball
The March 24 Speculation
On March 24, 2025, reports suggested that Trump’s upcoming tariffs would be less dramatic than expected. This led to a 3% Bitcoin price increase within 24 hours, as investors bet on a softened tariff stance [3].
The April 2 “Liberation Day” Anticipation
Trump’s “Liberation Day” tariff announcement on April 2 was anticipated to further impact the crypto market, with analysts suggesting that a softer approach could lead to market gains, while a tough stance might cause a sharp decline [4].
Beyond Bitcoin: Tariffs’ Impact on Other Cryptocurrencies
Trump’s tariff announcements didn’t just affect Bitcoin; other cryptocurrencies like XRP and SOL also felt the impact. These currencies rose with U.S. equity futures as investors speculated that the expected Trump tariffs could be narrower in scope than initially thought [5].
Tariffs and Crypto Market Liquidity: A Two-Way Street
Trump’s tariffs also influenced crypto market liquidity. As tariffs were expected to “liven up” the crypto markets again, investors turned their attention to Trump’s “Liberation Day” tariff announcement, highlighting the two-way relationship between tariffs and crypto market liquidity [6].
The Future of Crypto Markets: An Uncertain Landscape
Trump’s tariff impact on Bitcoin and the crypto market underscores the market’s unpredictability. As we navigate the future, it’s crucial to consider how policy changes, including tariffs, could shape the crypto market. With the right approach, these changes could drive growth and innovation, but they could also present significant challenges [7].
Sources
[1] Cointelegraph
[2] Coinlive
[3] Fortune
[4] CoinDesk
[5] BeInCrypto
[6] TradingView
[7] CNBC
[8] GitHub
