Analyst Explains the Hidden Link Between Tariffs and Bitcoin Gains

World Crypto Global

Crypto News

Top News By Agency By Country By Publication Time The Most Read Stories Most Viewed Agencies All News Analyst Explains the Hidden Link Between Tariffs and Bitcoin Gains © Copyright Image: CryptoPotato

With global trade tensions flaring and economic uncertainty gripping the markets, Bitcoin seems to be quietly charting its course above the chaos.

The worlds largest cryptocurrency by market cap has defied the downtrend in equities, surging to a six-week high of over $89,000 and emerging as an unlikely financial beacon amid the intensifying tariff war between the United States and its main trading partners.

How Tariffs Are Fueling Bitcoins Rise

President Donald Trumps escalating protectionist stance, including his administrations recent release of a non-tariff cheating list and threats toward Federal Reserve Chair Jerome Powell, has rattled investors and amplified fears of an inflationary spiral.

Well-known BTC advocate and crypto investor Kyle Chassé took to X to explain the tailwinds behind Bitcoins latest uptick. His argument hinges on a chain reaction: tariffs increase import costs, which then drive up consumer prices, eroding purchasing power and weakening confidence in fiat currencies. In this environment, Bitcoins fixed supply and decentralized nature make it an attractive alternative.

Tariffs are inflation in disguise, Chassé wrote. As tariffs escalate, global trust in USD weakens. Capital starts seeking neutral ground. Bitcoin, as a borderless and non-sovereign asset, becomes the logical alternative.

Theres a broader geopolitical undercurrent at play, too. China has warned of retaliation against countries cooperating with U.S. tariff demands, and Japan has expressed resistance to continued concessions in trade talks. Bitcoins appeal as a borderless, non-sovereign asset is growing in this climate.

When markets wobble from geopolitical tension, BTC bounces back faster than stocks or gold, Chassé said.

He also argued that smart money flows into chaos, and, in his opinion, BTC is one of the bigger beneficiaries right now.

Bitcoin vs. Traditional Markets

Recent price action appears to support the analysts claim. Bitcoin jumped to a six-week high of $89,200 on Tuesday, reflecting an 18% rally from its local bottom of $75,000 earlier in the month.

Over the past 24 hours, the asset gained a modest 2%. That upward move has propelled the cryptocurrencys market cap above $1.75 trillion, with its dominance now sitting at 61.4% (on CoinGecko), a mark of its growing strength relative to the wider crypto market.

Interestingly, this resurgence has coincided with gold hitting an all-time high near $3,500 per ounce, indicating a broader flight to perceived safe-haven assets.

The strong showings of gold and its digital counterpart have come against the backdrop of steep dips in U.S. equities. Since April 9, the S&P 500 has erased $2.5 trillion in value, and the Nasdaq Composite is down 16% year-to-date, according to Bernsteins Gautam Chhugani.

In that time, BTC shed only 10%, with Chhugani indicating in a research note that the asset is fast becoming a Main Street proxy as it outperforms traditional tech-heavy indices.

Read more: https://cryptopotato.com/analyst-explains-the-hidden-link-between-tariffs-and-bitcoin-gains/

Text source: CryptoPotato

AA News BTCEUR BTCGBP BTCUSD BTCUSDT Crypto News Bitcoin Bitcoin (BTC) Price Written by Wayne Jones On Tue, 22 Apr 2025 Disclaimer: Financial information and news are not financial advice, read the disclaimer. Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

The 7 Most Read Stories Best NFT Airdrops and Giveaways for October 2022 These Are The Bitcoin Predictions For 2023 By Arcane... Lightning Labs Announces Cheaper Way To Send Money W... Potential Loss of $50K in Plea Deal for Suspected Ha... Best Bitcoin Wallets Tom Brady, Gisele Bundchen And Sam Bankman-Fried Sue... The new $10 billion protocol: Bitcoin builder explai... View All Most Viewed Agencies InsideBitcoins.com BitcoinChaser Blockonomi

The most complete Crypto News Center.

Search Stories:

Latest top stories

Non-Zero Solana Addresses Skyrocket as SOL Becomes One of the Top Trending Crypto Topics

Cryptocurrency: News: SOL: Solana:

By ZyCrypto On Wed, 14 May 2025 Expert Maps Out Timeline For Bitcoin Price To $150,000, Cardano To $4, And FloppyPepe To $1

More News:

By Crypto Daily On Wed, 14 May 2025 New Era for Real-World Assets: What 2025 Means for Tokenization Projects

More News:

By Crypto Daily On Wed, 14 May 2025 Bitcoin Solaris Implements Revolutionary Merkle-DAG Structure, Solving Avalanches Byzantine Fault Tolerance Limitations

Cookies Consent.

WE AND OUR PARTNERS USE COOKIES ON THIS SITE TO IMPROVE OUR SERVICE, PERFORM ANALYTICS, PERSONALIZE ADVERTISING, MEASURE ADVERTISING PERFORMANCE, AND REMEMBER WEBSITE PREFERENCES.

By using this website, you automatically accept that we use cookies.

To learn more about use of cookies see our Privacy Policy. Learn More.