Crypto Traders Adjust Strategies as U.S. Tariffs Cause Market Turmoil, Bitcoin Positioned for Long-Term Growth

The implementation of heavy tariffs under the Trump administration has created a volatile environment for global markets, with cryptocurrencies feeling the effects. As U.S. tariffs push inflationary pressures higher, traders are re-evaluating their positions, with some seeing Bitcoin (BTC) as an attractive hedge against these risks.

Tariffs, by design, raise the cost of imported goods and can lead to inflation, supply chain disruptions, and currency fluctuations. In the short term, the U.S. dollar’s strengthening—prompted by trade imbalances from the tariffs—could exert downward pressure on crypto prices as investors seek refuge in traditional assets like gold.

However, many crypto traders are focused on the longer-term picture, considering Bitcoin’s potential as a store of value. As global uncertainty mounts and inflation rises, Bitcoin could emerge as a favored asset, especially if central banks respond by loosening monetary policy.

Rick Maeda, Research Analyst at Presto Research

The tariffs announced by the Trump administration, particularly the 34% levy on China and 25% tariff on vehicles, caused a significant market sell-off, with Bitcoin dropping to $82,000. Meanwhile, Ethereum saw a more pronounced dip, falling below $1,800. Despite this short-term volatility, the options market’s implied volatility term structures have remained relatively stable, indicating that traders are cautious but not panicking.

Bitcoin’s price remains highly sensitive to macroeconomic forces, with the asset class continuing to be linked closely to trade wars and global economic policies. Without a strong intrinsic narrative, Bitcoin is likely to continue facing downward pressure until a clearer path forward emerges.

Enmanuel Cardozo, Market Analyst at Brickken

The tariffs, which went into effect on April 2, 2025, quickly shook the crypto market, causing Bitcoin to drop sharply from $88,500 to around $82,000 within hours. This event, coupled with broader market uncertainty, has created a period of sideways consolidation for crypto, with retail investors shifting toward traditional assets like gold, while institutional investors are seizing the opportunity to accumulate Bitcoin at these lower levels.

Looking past the short-term volatility, however, there are promising signs for Bitcoin’s future. The tariffs could put downward pressure on the U.S. dollar, making Bitcoin an increasingly attractive hedge against inflation. Moreover, Bitcoin’s decentralized nature could provide a safeguard as governments explore alternatives to combat economic instability.

Alvin Kan, COO at Bitget Wallet

The tariffs could lead to stagflation—rising inflation without economic growth—placing additional pressure on the U.S. dollar. As the dollar weakens, Bitcoin stands out as a neutral, decentralized hedge. Traders who seek protection from inflation and trade war risks are positioning Bitcoin as a store of value.

In this environment of heightened uncertainty and economic strain, Bitcoin could see increased demand, especially as traditional fiat currencies struggle to maintain value. In a fragmented, protectionist world, Bitcoin offers a safe alternative, which may further boost its appeal.

Augustine Fan, Head of Insights at SignalPlus

While global markets experience a risk-off sentiment, Bitcoin has proven resilient, holding above the $80,000 mark despite the broader sell-off. The weaker U.S. dollar and rising gold prices are providing investors with a reason to consider Bitcoin as a safer option, potentially positioning it as a flight-to-quality asset in times of crisis.

As economic uncertainty grows, Bitcoin’s price may remain volatile, but long-term trends are favorable, particularly if it continues to perform better than other risk assets. For traders looking to capitalize on this opportunity, the $76,000–$77,000 range may be an ideal entry point.

Ryan Lee, Chief Analyst at Bitget Research

The implementation of tariffs ranging from 10% to 49% has spooked the market, with Bitcoin, Ethereum, and other altcoins seeing a sharp drop in value. In response to this heightened uncertainty, many traders have flocked to stablecoins as a safer bet, reflecting the fear of further market turmoil.

The longer-term effects of these tariffs on the U.S. economy could have a profound impact on the crypto market. Rising inflation, particularly due to tariffs on key trade partners like China, could drive more investors toward Bitcoin as a hedge. Early signs of Bitcoin accumulation suggest that, once the initial shock subsides, the crypto market could experience upward momentum, particularly if the Federal Reserve adopts more accommodative monetary policies.