The Trump Tariff Effect on Bitcoin Prices: A Market Rollercoaster
Introduction: Trump’s Trade Turbulence
In the four years of Donald Trump’s presidency, his trade policies, particularly tariffs, sent shockwaves through global markets, including the cryptocurrency sphere. This report explores how Trump’s tariff announcements influenced Bitcoin prices and the broader crypto market.
Trump’s Tariff Tumbles: Initial Impacts on Bitcoin
The Mexican and Canadian Tariff Pause
In February 2019, Trump announced a 30-day pause on tariffs against Canada and Mexico [1]. Bitcoin, then trading around $93,000, took a tumble, dropping below that mark. However, it quickly rebounded once the announcement was made.
The Persistent Chinese Tariffs
While the Mexican and Canadian tariffs saw a temporary reprieve, the Chinese tariffs continued to pressure the crypto market. In June 2019, when Trump threatened new tariffs on China, Bitcoin dipped below $80,000 [2].
The “Liberation Day” Tariffs: Anticipation and Impact
Softening Stance, Rising Prices
On March 24, 2025, reports emerged that Trump’s upcoming tariffs on trading partners would be less dramatic than expected [3]. Bitcoin responded with a 3% price gain within 24 hours, as investors bet on Trump softening his stance.
The “Liberation Day” Announcement
Trump’s “Liberation Day” tariff announcement on April 2, 2025, was eagerly anticipated. Analysts suggested that if Trump took a softer approach, crypto markets could rise, but a tough stance might lead to a sharp decline [4].
Trump’s Tariffs: A Market-wide Effect
Beyond Bitcoin: XRP and SOL
Trump’s tariff announcements didn’t just affect Bitcoin; other cryptocurrencies felt the impact too. On March 24, 2025, XRP and SOL rose with U.S. equity futures as reports suggested Trump’s expected tariffs could be narrower in scope [5].
Tariffs and Crypto Market Liquidity
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 [6].
Conclusion: Navigating the Unpredictable Crypto Seas
Trump’s tariff policies underscored the crypto market’s volatility and unpredictability. As we look ahead, it’s crucial to consider how future policy changes, including tariffs, could impact the crypto market. With the right approach, these changes could drive growth and innovation. However, they could also pose significant challenges, making it vital for investors to stay informed and adaptable.
Sources:
[1] Fortune
[2] Cointelegraph
[3] Coinlive
[4] CoinDesk
[5] BeInCrypto
[6] TradingView
