Insights

1. Market Uncertainty & Volatility – Trade tensions can create uncertainty in traditional markets, leading investors to seek alternative assets like crypto. If tariffs slow economic growth, some investors might move funds into Bitcoin or stablecoins as hedges. 2. Inflation & Monetary Policy – Higher tariffs can increase costs for businesses and consumers, potentially driving inflation. If the Federal Reserve responds with higher interest rates, risk assets (including crypto) could face downward pressure. 3. Stock Market Correlation – Crypto has shown a growing correlation with equities. If tariffs negatively impact U.S . stocks, crypto markets could experience sell-offs as investors reduce risk exposure. 4. Impact on Mining & Hardware Costs – Many crypto miners and hardware manufacturers depend on imported chips and equipment. Tariffs on tech components could raise operational costs, affecting mining profitability and potentially influencing crypto prices. 5. USD Strength & Stablecoins – If tariffs strengthen the U.S. dollar (as global capital flows into safe-haven assets like Treasury bonds), it could weaken demand for Bitcoin and other cryptos. Conversely, if tariffs hurt the U.S. economy and weaken the dollar, Bitcoin could benefit as an alternative store of value. 6. China & Crypto Trade – If tariffs escalate tensions with China, there could be indirect effects on crypto-related businesses based there. Stricter capital controls or currency instability in China could drive demand for crypto as an alternative to fiat.