Trump’s Tariff Tirade Shakes Markets – Why Bitcoin Could Be the Ultimate Hedge

Markets tremble as Trump doubles down on trade war threats – while Bitcoin hodlers just shrug.

When the political circus comes to town, traders reach for their usual playbooks: gold, bonds, and that tired old 'flight to safety' routine. But this time, there's a digital elephant in the room.

The Bitcoin Angle: Decoupling From Dollar Drama

As traditional assets flinch at every presidential tweet, BTC's 2025 performance tells a different story. No tariffs on this borderless asset – just a steady climb while fiat currencies play musical chairs.

Wall Street's Dilemma: Fight the Fed or Join the Revolution?

Bank analysts scramble to update their 'Bitcoin as risk asset' models (again). Meanwhile, crypto natives keep stacking sats – because nothing says 'store of value' like an asset that ignores geopolitical tantrums.

The Bottom Line: In a world where politicians treat economies like their personal fiefdoms, Bitcoin remains the ultimate protest trade. And for once, the 'digital gold' narrative doesn't sound like marketing fluff.

Trump’s tariff plans

As reported by Bloomberg TV, Trump reiterated his readiness to terminate ongoing negotiations and enforce increased duties on several countries, including key economic partner Japan.

He said, 

“No. No, I’m not. I’m not thinking about the pause.”

As expected, his renewed tariff threats have sent shockwaves through financial markets, disrupting earlier stability.

Trump’s tough trade talk hits markets

Following his remarks aboard Air Force One, U.S. equities saw an immediate downturn, with the S&P 500 shedding 14 points amid growing investor unease.

The crypto market too mirrored this turbulence, as uncertainty surrounding international trade talks prompted a sell-off.

Bitcoin [BTC] slipped by over 1.5%, while ethereum [ETH] saw a sharper 4% decline.

Altcoins faced steeper losses, as Ripple [XRP] slipped to $2.17, down 5.24%, while Dogecoin [DOGE] declined 3.5% to around $0.75.

Still, recent market signals indicate a cautious recovery is taking shape.

The community also expressed surprise at Trump’s remarks, as noted by one X user, who said,

“Great so we won’t have any deal, markets are gonna crash, economy is gonna be in the gutter… “Art of the deal”

Trump hinted at a breakthrough deal with India

In contrast to his firm stance on tariff talks with other nations, President Trump struck a more hopeful tone regarding a potential agreement with India.

He said,

“Possibly. That’s going to be a different kind of a deal.”

He added,

“It’s going to be a deal where we’re able to go in and compete. Right now, India doesn’t accept anybody in. I think India is going to do that, and if they do that, we’re going to have a deal for much less tariffs.”

This suggests that negotiations with India may follow a distinct path, possibly reflecting strategic considerations or mutual interests that set it apart from the broader trade disputes currently unfolding.

Is Trump going in the right direction?

Amid ongoing uncertainty, a recent CNBC video acknowledged that Trump’s tariffs have generated over $121 billion for the U.S., a vindication of his stance, contrary to earlier expert skepticism.

“Trump has been right about everything.”

Further confirming this, recent data from IntoTheBlock reveals that over 91% of Bitcoin holders are currently in profit, highlighting a strong underlying bullish sentiment despite short-term volatility triggered by tariff-related tensions.

Meanwhile, fewer than 2% of BTC holders are currently at a loss, suggesting growing confidence in a possible price recovery.

Source: IntoTheBlock

Echoing this outlook, Robert Kiyosaki, author of “Rich Dad, Poor Dad,” has already characterized such dips in Bitcoin’s value following Trump’s tariff announcements as not a setback.

Instead, he called it a discounted buying opportunity, hinting at confidence in BTC’s long-term trajectory even amid geopolitical uncertainty.