The Crypto Market Amid Tariff Games: Can Besant's "Put Options" Provide a Floor for Risk Assets?

“His (Trump's) risk tolerance is higher than mine.” This candid admission by U.S. Treasury Secretary Bessent not only reveals the underlying strategy of Trump's tariff policy but also prompts Wall Street to reassess the pricing logic of risk assets. “Maximize the implementation of 'MAGA' without provoking the markets.” In an exclusive interview with the UK's Financial Times, 63-year-old Treasury Secretary Bessent publicly articulated for the first time his core philosophy of balancing the markets and political agenda.

This former hedge fund manager, who has been in office for only nine months, is walking a tightrope between Trump’s aggressive agenda and market stability in his own unique way. Regarding the market turmoil caused by the Trump administration’s large-scale global tariffs, Bessent revealed the underlying strategy: Trump’s tariff “routine” is to “always announce high tariffs first to create negotiating leverage, and then lower them later.”

I. Tariff Games and Market Turbulence: Crypto Assets Under Pressure

In the interview, Bessent admitted for the first time that Trump’s announcement of large-scale tariffs in April, which triggered a sharp global market sell-off, was actually an integral part of Trump’s “master plan”. This “high-pressure first, compromise later” strategy deliberately created market volatility to generate negotiating leverage.

● “His (Trump's) risk tolerance is higher than mine.” Bessent’s frankness explains why Trump can tolerate the market’s violent reaction after tariff news is released. This high-risk game strategy has caused persistent turbulence in traditional financial markets.

● Since Bessent took office on January 28, the U.S. dollar exchange rate has fallen by about 8%, marking its worst performance since the same period last year. Democrats see this as a sign of lost market confidence. Illinois Democratic Congressman Sean Casten revealed, “Two weeks ago, I met with bankers in New York, and for the first time in my career, I heard people discussing hedging the dollar. That’s crazy.”

● The crypto market has shown unique resilience in this macro environment. Although trade tensions triggered a general sell-off in global risk assets, bitcoin and major cryptocurrencies quickly regained stability after short-term fluctuations. This performance further solidifies crypto assets’ unique position as both safe-haven and risk assets.

Table: Comparison of Key Policies and Market Reactions Since Bessent Took Office

Source: AiCoin compilation

II. The “Bessent Put”: A New Talisman for the Crypto Market?

This behind-the-scenes role of calming the markets has led many on Wall Street to see Bessent as a “safety valve” that buffers Trump’s extreme impulses. The market has even coined a new term—the “Bessent Put”—meaning investors believe Bessent knows the policy bottom line and will not let the market fall into true chaos.

● A Wall Street lobbyist said, “At critical moments, he is a fighter for our camp.” This view resonates particularly strongly in the crypto asset sector.

● As a former hedge fund manager, Bessent is well-versed in market operations, and his previous moves to relax crypto regulation have given the crypto community special expectations. The specific manifestation of the “Bessent Put” in crypto is that investors generally believe Bessent will step in to stabilize the situation and prevent systemic risk when the market experiences extreme volatility.

However, is this confidence excessive?

● Former Treasury official Steven Myrow issued a warning: “Unlike his predecessor Mnuchin, who tried to play the role of ‘guardrail,’ Bessent has no qualms about politicization, which could ultimately bring risk to the markets.”

● Crypto market analyst Zhang Wei pointed out: “The essence of the ‘Bessent Put’ is the market’s expectation of rational decision-making. As the crypto market increasingly integrates with traditional finance, this expectation naturally extends to the digital asset sector. But the problem is, Bessent’s political stance may limit his ability to act.”

III. Weak Dollar and Capital Flows: New Opportunities for Crypto Assets?

Since Bessent took office, the continued decline of the dollar has become a market focus. The dollar index’s roughly 8% drop is seen by traditional analysts as a sign of concern over U.S. fiscal credibility, but for the crypto market, it could signal new opportunities. Bessent defended the dollar’s depreciation, saying the dollar will rebound as the trade deficit narrows. However, this view has sparked different interpretations in the crypto community.

Oxygen, a decentralized finance protocol, founder Zhang Haitao said:

● “The weak dollar is driving global capital to seek alternative reserve assets,” and cryptocurrencies are clearly one of the options that cannot be ignored.

● According to AiCoin data, the global supply of stablecoins has increased by 15% over the past three months, with growth particularly pronounced during Asian trading hours.

● Meanwhile, the number of addresses holding more than 1,000 BTC has increased by 5%, indicating that institutional investors are accumulating positions amid market volatility.

Li Ming, an analyst at crypto market maker Folkvang Trading, believes:

● “Although the dollar trust crisis will not upend the existing monetary system in the short term, it does create an unprecedented window of opportunity for crypto assets. We are seeing more and more traditional financial institutions begin to include crypto assets as part of their asset allocation.”

It is worth noting that the Treasury Department under Bessent has shown a relatively open attitude toward crypto regulation, which stands in stark contrast to his tough stance on tariffs. This differentiated position further strengthens the unique status of the crypto market in an uncertain macro environment.

IV. Politicization Risk and Institutional Credibility: A Double-Edged Sword for the Crypto Market

The series of policies promoted by Bessent, while earning Trump’s trust, have also sparked criticism for politicizing the Treasury and damaging institutional credibility.

● A former Treasury official warned that Bessent is “quickly squandering the Treasury’s long-accumulated credibility, equivalent to gold”: “If the Treasury is seen as an overly politicized institution, it will lose credibility in the eyes of the market, which will have serious and substantive consequences.”

For the crypto market, this politicization risk is a double-edged sword. On one hand, the weakening credibility of traditional financial institutions may prompt capital to flow into decentralized financial systems; on the other hand, increased policy uncertainty may suppress institutional willingness to participate in the crypto market.

● Bessent, however, responds with market data. Since he took office on January 28, the S&P 500 index has risen by about 12%, while the 10-year U.S. Treasury yield, a benchmark for long-term borrowing costs, has dropped by more than 0.5 percentage points to 4%. “Where exactly is the market risk?” Bessent retorted forcefully, “They are simply wrong.”

However, crypto market participants have their own judgment on this issue. In its latest investment report, crypto fund Pantera Capital pointed out: “The politicization risk of traditional financial markets is becoming a catalyst for decentralized systems. We observe that during periods of increased policy uncertainty, DeFi protocol activity and TVL often grow against the trend.”

Table: Correlation Between U.S. Treasury Politicization Risk and Crypto Market Performance

V. Crypto Market Seeks Position Amid Policy Crosswinds

For Bessent, the real test will be whether he can help Trump deliver on his promise of an economic “golden age.”

● Although he expects productivity gains from artificial intelligence to drive economic growth, issues such as slowing U.S. job growth and stubborn inflation have persisted since 2025. Polls show Trump’s approval rating on economic management is not optimistic.

The crypto market, in this macro context, faces both opportunities and challenges.

● On one hand, easing trade tensions, a weak dollar, and the politicization risk of traditional financial markets all create a favorable environment for crypto assets;

● On the other hand, policy uncertainty and potential market volatility remain risks that cannot be ignored.

With the U.S. Supreme Court’s ruling on tariff legality approaching in November and uncertainty over Trump’s final decisions, the crypto market may see a new round of volatility. However, thanks to the characteristics of blockchain technology and the maturity of the decentralized finance ecosystem, crypto assets have demonstrated resilience and independent trends distinct from traditional risk assets.

From a behind-the-scenes “safety valve” calming the markets to a Treasury Secretary publicly defending Trump’s tariff strategy, Bessent is walking a tightrope between the radical MAGA agenda and market stability. For the crypto market, the effectiveness of the “Bessent Put” has yet to be truly tested in a crisis.

But one thing is certain: against the backdrop of questioned dollar credibility and increasing politicization of traditional financial policies, crypto assets are reshaping their market positioning as a new global safe haven and store of value. How far Bessent’s balancing act can go may determine how much the crypto market benefits from this round of macro policy adjustments.