Key Takeaways
- Bitcoin shows signs of revival following a dramatic crash caused by the Trump-triggered tariff war.
- The crash arrived a day after the prices soared due to optimism about Trump’s announcement of U.S. Strategic Crypto Reserves.
- The short-term recovery amidst the global economic tensions creates optimism among the crypto traders.
- Experts suggest that the global economic wars, triggered by policies like the tariffs, will help Bitcoin reach new heights as investors flock to alternatives to the traditional economy.
The crypto market saw a price-soar, in which the Bitcoin reached $94.5K from $79K, due to Trump’s announcement of U.S. Strategic Crypto Reserves. Following the surge, Trump’s stands on international tariffs triggered a downtrend in the market, bleeding the Bitcoin into $80K. However, the coin rebounded quickly to $92K, generating hopefulness in the hodlers.
Other major currencies also faced extreme fluctuations, including the crypto reserve coins ETH, ADA, XRP, and SOL. While SOL and ETH witnessed a 5% recovery from the past day, ADA showed a 1% increase and XRP a 3%.
Impact of Trump-Fueled Tariff War on Bitcoin
The 20% increase in the tariffs of imports from China, the 25% increase of imports from Canada, and the 25% increase in Mexico triggered a panic in the entire economy. The worldwide trade war fear was intensified when China responded by imposing 10 to 15% tariffs on imports from the U.S., taking effect from March 10th, 2025.
The economic instability forced various investors to sell their shares of stocks and cryptocurrencies. Unlike traditional assets like Gold, Bitcoin has a tendency to express dramatic reactions to economic trends and liquidity cycles. According to various experts, the tariffs will slow economic growth and reduce the demand for risky assets like BTC.
The tariffs will also increase inflation, causing speculations about high interest rates. These issues will temporarily create huge fluctuations in the charts of BTC. However, the long-term scenario is different. Experts suggest that Bitcoin will increase its dominance over traditional finance when the U.S. market realizes that the rising interest rates will weaken the nation’s economy in the long run.
Also Read: El Salvador’s Bukele Vows To Continue Bitcoin Purchases Despite IMF Deal
Can Global Economic Wars Fuel a Bitcoin Bull Run?
The quick recovery of Bitcoin from $80K to $92K shows us that investors are not willing to stay away from crypto even in the middle of the tariff crisis. While the tariff war is heating up as an immediate reaction and creating short-term fluctuations, it could increase inflation and slow economic growth in the long term. This could strengthen Bitcoin’s role as an alternative to traditional assets, especially if the upcoming policy decisions of the U.S. strengthen the borders to create more global economic instability.
The global economic wars, triggered by policies like the tariffs on Canada, Mexico, and China, will lead to higher prices and ripple effects on the global markets. Investors who are well aware of the upcoming conditions will reach for Bitcoin to get some protection against the crisis. So, the chances of current economic wars fuelling a Bitcoin bull run are so high. However, the exact opposite scenario can also occur in this uncertain atmosphere.
