The recent announcements by the US government to specifically reduce its trade tariffs have not only calmed global markets but also given new impetus to the Bitcoin market.
The White House’s decision to reconsider the comprehensive trade tariffs originally planned for April 2 and instead pursue a more targeted strategy has led to a noticeable recovery in the price of Bitcoin. On Sunday, the cryptocurrency’s price rose by as much as 2.7% following reports of the new tariff policy. This development demonstrates how strongly markets react to political decisions, even those not directly related to cryptocurrencies.
The announcement that the US will forgo sector-specific tariffs and instead impose “reciprocal tariffs” on key trading partners was seen by many as a step to calm the markets. The uncertainty triggered by President Trump‘s original announcement to observe April 2 as “Liberation Day” with far-reaching tariffs had previously led to volatility. The Bitcoin price, which had fallen to lows of $81,200 last week, now showed resilience and exceeded the $86,700 mark.
The US government’s decision to rethink its tariff strategy has been viewed by financial analysts as positive for the markets. According to reports, the government plans to impose tariffs on approximately 15% of countries with persistent trade imbalances with the US. This move follows the Federal Reserve’s announcement that it will keep interest rates stable and recent Consumer Price Index figures showing a cooling of inflation.
Although tariffs do not have a direct impact on Bitcoin and other cryptocurrencies in the short term, they are part of a larger trend that is increasing uncertainty in the markets. According to Zach Pandl, head of research at Grayscale, the increased political uncertainty is leading investors to reduce their portfolio risk overall. This demonstrates how closely developments in traditional financial markets are linked to the world of cryptocurrencies.
A Bloomberg study shows that the tariffs implemented or threatened by President Trump affect at least $1.8 trillion in global trade. These include 25% tariffs on global steel and aluminum, as well as additional tariffs on Chinese imports. These measures have sparked global concern due to their potential to destabilize the global economy.
The economic impact of these tariffs is significant. Bloomberg Economics forecasts a decline in US GDP of up to 0.7% and an increase in inflation of 0.4%. Despite President Trump’s claims that the tariffs are intended to curb illegal immigration and address trade imbalances, skepticism remains high. A European Central Bank official recently stated that financial crises often begin in the US and then spread to the rest of the world.
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