Trump’s 2025 Tariffs Shake Crypto Markets — Crash Now, Boom Later?
Key Points
1. Research suggests Trump’s tariffs in 2025 have caused short-term volatility in cryptocurrency markets, with Bitcoin and other assets experiencing price drops after tariff announcements.
2. It seems likely that in the long term, these tariffs could benefit Bitcoin as a hedge against inflation and a weakening US dollar, though this is debated among experts.
3. The evidence leans toward increased mining costs and risk-off sentiment affecting crypto, with recent data showing significant liquidations and price fluctuations.
1. Introduction
Trump’s tariffs, implemented in 2025, have stirred the global economy, and the cryptocurrency market is feeling the heat. These tariffs, aimed at protecting US industries, have introduced uncertainty that impacts digital assets like Bitcoin and Ethereum. Let’s break down how these policies are affecting crypto, both now and potentially in the future, in a way that’s easy to follow.
2. Immediate Effects
1. When Trump announced tariffs, such as the 10% baseline on all imports on April 2, 2025, crypto prices took a hit.
2. Bitcoin fell from $88,000 to $81,000, and as recently as August 1, 2025, it dropped 3% to $113,231.41.
3. Ethereum and Solana also declined, with liquidations reaching $228 million for Bitcoin and $262 million for Ether in 24 hours — a sign of rapid market response to geopolitical news.
3. Background on Trump’s Tariffs
1. A 10% baseline tariff on all foreign goods was announced on April 2, 2025, known as "Liberation Day".
2. Tariffs rose to 34% on China and 20% on the European Union.
3. Steel and aluminum import duties doubled from 25% to 50% on June 3, 2025.
4. A 90-day pause in May temporarily eased the pressure, reducing tariff levels by 115 percentage points.
These moves shook traditional markets and put pressure on the US dollar, indirectly spilling over into the cryptocurrency market.
4. Market Reactions
1. On April 2, 2025, Bitcoin dropped from $88,000 to $81,000 in hours, triggering over $300 million in liquidations.
2. Ethereum dropped 7%, Solana 13% on the same day.
3. On August 1, 2025, following Trump’s updated reciprocal tariffs, Bitcoin fell 3%, Ethereum 6%, and Solana 5%.
4. This led to $228 million in Bitcoin liquidations and $262 million in Ether liquidations in 24 hours.
Social media highlighted these moves:
On May 25: “Trump warns EU with a 50% tariff, triggering a sharp Bitcoin sell-off: BTC drops ~5% to $105K, wiping out $600M in leveraged positions.”
On February 4: “Crypto might be decentralized, but politics still has the power to rock it. Trump’s tariffs = Bitcoin dropped by 14%.”
5. Short-Term Impacts
1. Investors shifted to safer assets like gold and the dollar, creating a “risk-off” mood.
2. High liquidation volumes followed each tariff event.
3. Tariffs on Chinese mining equipment raised miners’ operational costs.
4. Lower mining profitability is reducing hash rates and impacting Bitcoin’s network security.
5. Hashprices hit historic lows as mining margins tighten.
6. Long-Term Perspectives
1. Tariffs may raise inflation (estimated at +0.4% annually through 2025-2026).
2. Bitcoin could rise as a hedge, potentially exceeding $110,000.
3. The US dollar might weaken due to lower global demand for US exports.
4. A weaker dollar often supports higher crypto prices.
5. Trade friction might accelerate adoption of crypto for international transactions.
A December 11, 2024 post predicted:
“If Trump’s tariffs reduce USD demand globally, crypto’s market cap could rise 4x to over $10 trillion.”
7. Stablecoins and Global Transactions
1. Stablecoins like USDT and USDC are increasingly used during times of global financial stress.
2. They provide a fiat-pegged digital safe haven and smoother cross-border transactions.
3. Emerging economies especially benefit from their stability against volatile local currencies.
8. Broader Economic Context
1. According to the Tax Foundation, average US households will pay $1,300 more in taxes due to tariffs in 2025.
2. The CBO estimates a GDP reduction of 0.2% to 0.3% per year due to tariffs.
3. Over a decade, this could shrink the US economy by 1.5%.
4. Lower business confidence and consumer spending may reduce crypto inflows.
9. Recent Developments and Expert Opinions
1. On August 1, 2025, Ben Kurland (CEO of DYOR) said:
“After running red hot in July, this is a healthy strategic cooldown. Markets aren’t reacting to a crisis—they’re responding to the lack of one.”
2. Bitcoin gained 8% in July, while Ethereum surged 49%.
3. Ether ETFs saw over $5 billion in July inflows (totaling $9.64 billion), with just $1.8 million in outflows on July 2.
4. Bitcoin ETFs ended July with $114 million in outflows, but still brought in $6 billion for the month (part of $55 billion cumulative).
5. Despite short-term stress, institutional confidence remains strong.
10. Conclusion
Trump’s tariffs in 2025 have added complexity to the crypto market landscape. While the short-term effects include sharp sell-offs, miner stress, and market volatility, the long-term scenario presents opportunities for Bitcoin and other digital assets.
Key takeaways:
1. Tariffs have caused immediate negative pressure on prices.
2. Inflation and USD weakness could eventually drive demand for crypto.
3. Miners are under financial pressure due to higher equipment costs.
4. Stablecoins are rising as alternative tools for cross-border resilience.
5. Institutional inflows remain surprisingly strong.
As political and economic dynamics evolve, staying informed is crucial. Crypto might be decentralized, but it isn’t immune from global policy. By understanding these shifting tides, traders and investors can prepare for both risk and opportunity.
$BTC $ETH $BGB
July NFP Shortfall Triggers $700M+ Crypto Liquidations
In July, U.S. employment growth faltered: non‑farm payrolls rose by just 73,000, falling well short of the 110,000 consensus expectation—a significant economic warning sign. The Bureau of Labor Statistics also revised May and June’s figures downward by a combined 258,000 jobs, revealing the smallest job gain since October last year .
That macro weakness rattled risk markets. Crypto derivative markets liquidated $700 million+, mostly wiping out long positions (around 85%). Bitcoin slipped as low as $113,000, while Ethereum fell over 6%, with broader altcoins such as Cardano, Solana, and $XRP showing 7–8% losses .
Key Drivers & Market Interpretation
Jobs data disappointment: Payroll gains knocked down Fed rate cut probabilities, yet still hinted at softening labor conditions—creating a mixed “bad news is bad news” environment for markets .
Leverage wipeout: More than 240,000 traders were liquidated; roughly 85% were long positions, highlighting the heavily bullish positioning that got flushed .
Bitcoin stress: $BTC dropped toward $114,000, breaching key psychological levels. Ethereum and meme coins were hit even harder—liquidations in $ETH alone likely exceeded $250 million .
Macro crosswinds: Rising geopolitical tensions and new trade tariffs cast an additional shadow over risk-on sentiment, undermining confidence in speculative assets like crypto .
Investment Positioning: How Would Bitget Respond?
Objective Tactical Response
Risk Mitigation Reduce long leverage. Shift toward spot holdings or short hedges to ride volatility.
Strategic Exposure For bullish investors: dollar-cost average into dips at $113–115K. For cautious players: wait for capitulation or confirmation of consolidation near $110K support.
Opportunity Hunt Identify well-capitalized altcoins trading significantly below their breakouts; consider funding yield strategies amid lower price action.
Macro Watch Monitor Fed commentary, upcoming inflation readings (PCE), and tariff developments to anticipate next market driver.
Final Take
July’s soft jobs report and painful liquidation cascade underscores that the crypto market remains intensely sensitive to macro surprises and leverage imbalances. Whether this pullback is a shakeout or the start of a deeper correction, price discipline and capital preservation are critical.
Ethereum and other high-beta tokens may offer attractive entry points if broader support holds. Meanwhile, tactical traders may favor short hedging or yield strategies while navigating volatility. Bitget would remain cautious yet opportunistic, balancing protective measures with selective exposure to the reset in risk appetite.
Next on Watch
Upcoming U.S. CPI / PCE inflation prints and Fed rhetoric
Global tariff policy shifts and geopolitical tensions
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Crypto Fear & Greed Index, open interest, and liquidation heatmap dynamics