Trump’s Tariffs: A Turning Point for Crypto?

The ripple effects of President Trump’s sweeping tariff announcements are still being felt across global markets, leaving many wondering about the future of cryptocurrency. While the initial reaction was a market downturn, some analysts believe this could be a pivotal moment, marking the end of a period of high uncertainty and potentially paving the way for crypto market recovery.

The S&P 500 experienced a significant drop following the tariff announcement, but this volatility has prompted some experts to see potential upside for cryptocurrencies. Michaël van de Poppe, founder of MN Consultancy, suggests that the tariffs represent the peak of market uncertainty. With the playing field now clearer, investors may start to re-evaluate their positions.

Van de Poppe further speculates that the tariffs are a strategic move by Trump to boost domestic growth. He predicts a potential reversal of the tariffs within the next 12 months.

President Trump’s plan includes a 10% baseline tariff on all US imports and a higher reciprocal tariff on select countries.

Could this lead to Fed easing?

The increased market stability following the tariff announcement could trigger renewed investment in cryptocurrencies. Van de Poppe believes that investors will start to \”buy the dip\” once the dust settles, recognizing undervalued assets. He suggests that the economic impact of the tariffs might even push the Federal Reserve towards another round of quantitative easing (QE), which historically has been positive for Bitcoin.

Arthur Hayes, co-founder of BitMEX, has even predicted Bitcoin could reach $250,000 if the Fed initiates a new QE cycle. However, it’s important to remember that this is a highly speculative prediction.

Uncertainty Remains

Despite the potential for recovery, Noelle Acheson, author of the Crypto is Macro Now newsletter, cautions that uncertainty may persist for several weeks. She anticipates continued risk-off behavior, although short-term rebounds are possible. She highlights Bitcoin’s short-term correlation to risk assets, contrasting it with gold’s continued upward trend.

Crypto intelligence firm Nansen estimates a 70% probability of a market bottom by June, contingent on how tariff negotiations evolve.