In our Binance report part 1, we looked at the tariffs and the turmoil it caused. In this part, #2, we will look at Bitcoin’s role.
What is the bottom line for Bitcoin with these tariffs? We take the recent Binance report as our base. So, let’s dive in.
Confirmation of Trump’s Reasons for Tariffs
Today we saw a lot of confirmation of why Trump wants the tariffs. In our first part, we argued that Trump needs lower interest rates on the 10-year bonds. However, big holders of these bonds are selling off their bonds.
This causes the interest rates to increase, rather than to decrease. This may be a major factor why Trump called a 90-day pause on the tariffs. Check out this reaction. Take your time and read the whole thread on X.
We now know Trump’s TOP economic priority:
For weeks, President Trump said there would be NO tariff delay, even as stocks erased $12+ TRILLION.
Then, the bond market BROKE and a 90-day tariff pause was implemented 12 hours later.
Keep watching bonds.
(a thread) pic.twitter.com/M3AltQqjee
— The Kobeissi Letter (@KobeissiLetter) April 10, 2025
Like yesterday, it is still unclear what this pause exactly means. The trade war is still raging., full-on. Trump raised the Chinese tariffs to 145%, up from 125% yesterday.
The market is now realizing that we still have:
1. 10% baseline tariffs on all countries globally
2. 25% tariffs on automobile imports to the US
3. 25% tariffs on steel and aluminum tariffs
4. 25% tariffs on imports from Canada and Mexico
5. 145% tariffs on imports from…
— The Kobeissi Letter (@KobeissiLetter) April 10, 2025
At the same time, the European Union is looking at other options. It has begun negotiations to end EU tariffs on Chinese electric vehicles. The EU also agreed to start trade talks with the UAE after the Trump tariff war. Free trade between the two is on the table.
EU agrees to start trade talks with #UAE after Trump tariff war https://t.co/dJEKHZz93H via @ft
— Rupert Bumfrey
(@rupertbu) April 10, 2025
What Does This Mean for Bitcoin?
In the short term, this all means pain. Pain for the stock market and the crypto sector. Bitcoin keeps bouncing up and down like an excited kid. However, there are no major moves yet. In today’s news video of Altcoin Buzz, Cody doesn’t rule out that $BTC can still drop to the $72k level.
However, if we look at the longer term, it’s very positive for Bitcoin. The US Dollar is and keeps losing ground.
The U.S. Dollar has exited the room.
Once again, something is broken. pic.twitter.com/2FxZej9kbo
— The Kobeissi Letter (@KobeissiLetter) April 11, 2025
On the other hand, the gold price keeps rising. It has been doing this for the last six months. Bitcoin is likely to follow.
Source: X
Here’s a great comparison between gold and Bitcoin.
While #gold and #Bitcoin are both considered stores of value, the reason why Bitcoin’s unit price is higher than gold’s does not mean it’s “more valuable” overall. Let’s break down why Bitcoin is priced higher per unit than gold — and how that fits into a broader #economic and… pic.twitter.com/yUeVTed6UZ
— KK (@kowshikkomandur) April 6, 2025
We also saw that Bitcoin decoupled from the stock market. Whilst stocks plunged, the crypto sector held up and stayed on par with its prices. There was less volatility compared to stocks. After a few days, Bitcoin started to give in, but it also kept bouncing back. Still, we’re not out of the woods yet. However, it is clear now that Bitcoin distinguishes itself from traditional asset classes.
This gives Bitcoin a safe have narrative. Inside a protectionist global economy, Bitcoin finds its way. Especially with monetary inflation and fiat debasement on the table. This is when Bitcoin can show its strength.
The current macroeconomic landscape is complex. Stagflation is an option. This word is a combination of stagnant and inflation. There’s talk of this when economic growth is stagnant, and inflation grows.
At the same time, more countries and big firms consider adding Bitcoin to their portfolios. This is massive news for Bitcoin. There seems only one direction for Bitcoin in the long term, and that’s up.
Conclusion
We haven’t had aggressive tariffs like we have right now, since the 1930s. A recent Binance report gave us insight in what the tariffs mean. In short, they are shaking up the financial markets. However, Bitcoin is showing signs that it can become a haven. The short term will be volatile. Nonetheless, for the long term, the perspective for Bitcoin is looking good.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.
Copyright Altcoin Buzz Pte Ltd.
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