If you own Bitcoin or are thinking about buying some, you’re probably wondering how the new US tariffs might affect its price. With Donald Trump back in the White House, a lot has changed in both politics and the economy, and crypto is right in the middle of it.

Since taking office, Trump has made big moves that have shaken up markets. One major action was announcing steep tariffs—25% on imports from Canada and Mexico, and 20% on goods from China. These decisions have added tension to global trade and raised concerns about inflation.

At the same time, Trump has shown surprising support for cryptocurrencies like Bitcoin. He signed an executive order to create a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” using crypto assets seized by the government. According to David Sacks, who oversees AI and crypto policy at the White House, this reserve is like a digital version of Fort Knox, holding what he estimates to be over 200,000 Bitcoin.

This move has sparked mixed reactions. Some people in the crypto world want more transparency. Others question whether the government should be involved at all. Still, it shows that Bitcoin is becoming more mainstream—even part of national policy.

But here’s where things get complicated. Trump’s return also brought meme-coins like $TRUMP and $MELANIA into the spotlight. Critics argue these coins are more about attention than real value. CoinCorner CEO Danny Scott even called them a “mockery of the industry.”

So what does all this mean for Bitcoin’s price?

In simple terms: tariffs could push prices higher by increasing inflation, but they also create market fear, which can trigger sell-offs. When inflation rises, people often rush to buy before prices go up more. That happened in December 2024 when the Consumer Price Index (CPI) jumped 2.9%. During that time, Bitcoin spiked $1,500 in just 24 hours, hitting $98,000.

That spike didn’t last. In March 2025, Bitcoin took a hit as traders panicked. Over $1 billion in crypto was liquidated in just one day. Why? A few big players started moving large amounts of Bitcoin and Ethereum around. Mt. Gox, a now-defunct exchange, transferred tens of thousands of Bitcoin to pay off debts. At the same time, a major Ethereum investor sold off a large amount of ETH—adding fuel to the fire.

To make things worse, Trump warned of a possible recession. That sent both stock and crypto markets into a downward spiral. Bitcoin dropped to a four-month low before bouncing back slightly.

Right now, Bitcoin is still closely tied to the NASDAQ, but that connection is weaker than before—down from 72% to around 40%. That might actually be good news. In times of crisis, like the banking crash in early 2023, Bitcoin acted more like a safe-haven asset—similar to gold.

This is where Bitcoin stands out from other cryptocurrencies like Ethereum. While Ethereum is still connected to the tech industry and reacts like tech stocks, Bitcoin is starting to behave more like digital gold—a hedge against economic instability.

Looking ahead, US tariffs could keep creating uncertainty. In the short term, this means more price swings and possible drops in value for risky assets like crypto. But in the long run, if these policies lead to deeper economic problems, Bitcoin could gain strength as a safe asset.

To stay ahead, investors and traders should keep an eye on US government decisions and global events. Understanding these trends can help you manage risk and possibly benefit from Bitcoin’s potential as a hedge against inflation and political instability.

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