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Trump's Tariffs Spark Bitcoin Price Volatility, Potential $150,000 Surge

Coin WorldWednesday, Apr 2, 2025 8:28 am ET
2min read

Donald Trump’s impending tariff policies are expected to have significant market effects across conventional sectors and cryptocurrency markets. The predicted impact of President Trump’s tariffs spans the global economy, with analysts projecting their influence on Bitcoin price movement. According to experts who study the effects of these tariffs, the bearish trend for Bitcoin in the short term may lead to unprecedented price spikes up to $150,000.

President Trump’s tariff announcement primarily targets Chinese imports and Mexican and Canadian products, causing Bitcoin to demonstrate vulnerable price movements. The trade tariffs implement a global trade relationship transformation through a wide-ranging strategic plan that currently generates temporary market financial instability. The Bitcoin price, which typically carries high risks, fell steeply from its $109,000 peak during the year to its current price range of $84,000. The market value declines because investors avoid risky holdings when trade tensions with tariffs elevate global economic growth concerns.

Bitcoin’s movements now display parallel behaviour with traditional stock and bond financial instruments that experience stress because of tariff-related challenges. The escalating global uncertainty has forced investors to prioritize stability possessively because of their risk-averse attitudes. Bitcoin faces difficulties anticipated to surpass the crucial price points of $87,000 and $92,000, but experts expect it will either stabilize or decline following global economic uncertainty.

Ask Aime: What impact will Trump's tariffs have on the stock market?

Several experts predict that the long-run impact of tariff policies will benefit Bitcoin instead of weakening it, despite its short-term adverse effects. According to Omid Malekan, an adjunct professor at Columbia Business School, ‘’Bitcoin might end up serving as a digital gold that competes against traditional assets like gold.’’ Bitcoin could appeal more strongly to investors because of the declining U.S. dollar influence in global trade caused by Trump’s tariffs and its nature as a non-sovereign asset. The growth of Bitcoin’s value occurs when international trading nations choose it as a gold-like asset alternative to the U.S. dollar.

Bitcoin adopts the role of “digital gold” even stronger when inflationary effects caused by tariffs emerge in the market. Bitcoin may protect against declining fiat currency values because inflation increases while buying power decreases. Similar market developments that boosted gold prices can elevate Bitcoin values to unprecedented heights.

Some analysts project Bitcoin to exceed $150,000 in the future due to their bullish outlook, even though short-term forecasts remain negative. According to proponents of this argument, currency tariffs would simultaneously push down the dollar value while creating additional inflationary conditions. Due to this market development, more investors are expected to choose Bitcoin as an alternative to standard currency.

Bitcoin is gaining popularity as a store of value because both retail and institutional investors show increased Bitcoin adoption. Large investment firms see Bitcoin as a proper investment class, and this phenomenon might intensify when economic instability emerges from tariffs. The growing institutional adoption of Bitcoin indicates a substantial market appreciation, making reaching a price target of $150,000 feasible.

Although Trump’s tariffs and bearish Bitcoin market conditions may induce short-term turbulence, the long-term effects should boost Bitcoin’s value to new levels. Modifying international trade regulations will increase Bitcoin adoption because it establishes Bitcoin as a secure asset. American inflation and dollar devaluation during the upcoming years will shape favourable market conditions that can drive Bitcoin prices to reach $150,000. Bitcoin investors must follow geopolitical and economic changes because such factors can initiate another market rally for Bitcoin.

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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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