Trump’s tariff: What does it mean to Bitcoin and why the encryption may turn into ascending

About the author
Professor Andrew Orkhardt is the head of the Finance Department at Birmingham Business College, Birmingham University.
The opinions expressed here are his property and do not necessarily represent that Decipher.
President Donald Trump announced the definitions earlier this week, which ranges from 10 % for the United Kingdom to 49 % for Cambodia, and the president suggested by the president to collect trillion dollars to the American economy and “make the wealthy America again.” A lot has been written on the last day about whether it is these Definitions will cause stagnationand they Impact on the American economy, and How China interacts.
Given the uncertainty in the market, and first Huge losses in all financial markets The next day of the advertisement And expected losses, is this an opportunity to encrypt?
Check on a trip to safety
The cryptocurrency was considered at the beginning as Safe and hedge Against traditional financial assets, But recently, it has been proven that it was a poor and poor waste Just hedge Against retreat in financial markets. Thus, cryptocurrencies are increasingly associated with stocks and bonds.
Looking at the news of tariffs and subsequent economic certainty, investors may search for bitcoin (and other encrypted currencies) only they have done in the past when there is a great lack of certainty in the market. Zach Bandel“I think the customs tariff will weaken the dominant role of the dollar and create a space for competitors, including bitcoin. Prices have decreased in the short term.
Bitcoin is a shrinkage, and has a predictive supply, and is often classified as “digital gold”, and thus may be seen by investors (and other cryptocurrencies) as a safe way to maintain their wealth during these maximum times of economic and political uncertainty.
Market activity
There has been a lot of activity in cryptocurrencies that are looking to advertise in recent months. The US -based circle Stablecoin Usdc source, and it is in public. The company presented S-1 Model With the Securities and Stock Exchange Committee on Tuesday, With shares trading CRCL.
The company reported a $ 1.7 billion reserve income of Stablecoin at the end of 2024. additional, rippleand CornerAnd twin All of them are rumored to look at the subscriptionsThus, which indicates that many in this industry see this is the time for the public, the arrows, growth, and become more part of the traditional financial system.
What’s more, the price activity was positive over the past year. When Donald Trump became President of the United States for the second time in November, Bitcoin jumped to the highest level of more than $ 75,000 in the beginning, then topped more than $ 109,000 in January. However, in recent months, Bitcoin has recovered and floats around the mark of $ 80,000.
But the institutions continued to be attracted to cryptocurrencies, especially since the launch of the bitcoin spot ETF in January 2024. According to Surveyed by Ernest and Young in early 202589 % of institutional investors aim to increase their exposure to digital assets in 2025, and 59 % will allocate more than 5 % of their entire wallet. This is a huge amount, and 68 % of them said they would buy investment funds traded from Solana or XRP at the moment inserted.
Moreover, the Stablecoin market continues to grow, with a total size of more than $ 230 billion, According to Dalma. Therefore, the cryptocurrency markets do not see an end in the horizon and the activity is prosperous as it has always been.
Organizational clarity
The cryptocurrency was lacked organizational clarity since it became the main current in 2008. The previous administration, including the SEC chair at the time, Gary Ginsler, was organizing encryption by implementation, such as high -level cases that include Coinbase and Ripple laboratories.
Gainsler performed About 100 enforcement against cryptocurrencies in its hours as SEC president. However, many have argued in the industry that the organization by enforcement does not work, and that the Supreme Education Council needs to provide more guidance and a strong organizational framework to work with the encrypted currency industry.
the Financial innovation and technology (Suitable) for 21street The Century Law brought some clarity, against the desires of the SEC Gensler President, in May 2024 and presented some directions to the market. Trump said, during his 2024 election campaign.Fire Secre Gary Gensler chair on the first day“If he was elected. Although Trump did not do this, it did not. Gary Ginsner resigned In January 2025, Seeing the wall writing.
Since then, SEC has been completely positive about encrypted currencies, with SEC Hester PEIRCE, positively around the market and creating a The encryption workplace To integrate the industry into the market. He was always looking at organizational clarity as the largest obstacle Current currencies to overcome wide -ranging accreditation, The clarity may be on the horizon, it can only indicate good news of the market.
Bitcoin strategic reserves
The Bitcoin Strategic Declaration was one of the most interesting events, and perhaps probably, for the beginning of the Trump administration. on March 2, Trump announced The reserve will include Solana, Cardano, Ripple, and Ethereum, as well as Bitcoin, with the aim of making the United States “the capital of the world of encryption” and support the growth of industry.
the The executive order has been signed On March 6 To create this reserve, funded by Bitcoin and Bitcoin Digital assets that were already lost. Although there are no plans for the United States currently to buy more digital assets to finance this reserve, the fact that the United States government uses it as a reserve that cannot be considered positive for the market.
However, as always with Crypto, and any market, the prediction of market movements is a fool. like Isaac Newton’s situation It, you can “calculate the movements of heavenly objects, but not the madness of people.”
Pendant It is believed that Bitcoin will reach the highest new level ever this year, and given the activity in the ecosystem of the encrypted currency and the financial and political certainty, there is no doubt that it will be an interesting year in encrypted currencies.
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