While traditional markets reel from President Trump’s newly announced global tariff policy, Bitcoin has demonstrated surprising stability, suggesting a possible evolution in its role as a financial asset during economic uncertainty.
Market Turmoil Following Tariff Announcement
President Trump’s recent announcement of reciprocal worldwide tariffs triggered the worst stock market performance since summer 2020. The Dow, Nasdaq, and S&P 500 all experienced steep single-day drops as investors rushed to offload risk assets. Bitcoin mining stocks weren’t immune, falling as much as 15% on Thursday, with spot Bitcoin ETFs recording nearly $100 million in net outflows.
The new tariff structure includes:
- A baseline 10% tariff on all imports (effective April 5)
- Exemptions for USMCA-compliant goods
- Escalating tariffs up to 49% for certain countries
- Reciprocal tariffs scheduled to begin April 9
Federal Reserve Chair Jerome Powell warned that these measures will likely increase inflation and slow U.S. economic growth.
Bitcoin’s Surprising Resilience
Despite the broader market selloff, Bitcoin has shown remarkable stability, rebounding 2.2% to $84,000 by Friday. This recovery outpaced traditional markets and highlights what some analysts see as Bitcoin’s evolving market position.
“Bitcoin is holding up better than altcoins because its market structure has fundamentally changed post-ETF,” explained Injective CEO Eric Chen. “Demand now comes from retirement accounts, macro funds, and corporate treasuries like MicroStrategy and GameStop.”
Other major cryptocurrencies also began recovering on Friday:
| Cryptocurrency | Price Change |
|---|---|
| Bitcoin (BTC) | +2.2% |
| Ethereum (ETH) | +1.1% |
| XRP | +4.0% |
| Solana | +6.0% |
| Dogecoin | +7.0% |
A New Role for Bitcoin?
Some financial experts are beginning to view Bitcoin as a potential hedge against U.S. economic isolation. Standard Chartered analysts suggest that Bitcoin’s borderless nature could make it increasingly attractive to global investors seeking alternatives during geopolitical uncertainty.
Pantera Capital General Partner Cosmo Jiang characterized the current situation as “idiosyncratic and not a reflection of deeper economic issues,” adding that “digital assets, as the tip of the spear in growth assets, were the first to pull back and may also be the first to bottom out and rebound.”
Institutional Hesitation Persists
Despite Bitcoin’s promising performance, major institutional investors remain cautious about fully embracing cryptocurrency. Benchmark equity analyst Mark Palmer points to regulatory uncertainty as the primary barrier:
“While there was a lot of excitement about institutional adoption of Bitcoin and crypto following the U.S. elections in November, the reality is that institutions are still looking for a green light to invest in the space in earnest. They likely won’t have one until crypto market structure legislation is enacted.”
This regulatory ambiguity leaves crypto markets primarily in the hands of retail traders and hedge funds, though President Trump has reportedly signaled interest in having stablecoin legislation ready by August.
Technical Analysis Points to Potential Rally
John Glover, chief investment officer at Ledn and former managing director at Barclays, believes Bitcoin remains in Wave IV of its Elliott Wave cycle despite the recent pullback from $88,000 to $81,500.
“Unless we see a close below $62K, this wave count will play out as expected,” Glover noted. “Options activity suggests many are hedging at $70K while allowing for upside participation up to $100K by the end of June.”
IPO Plans May Face Delays
The market uncertainty created by Trump’s tariff policies could force several high-profile crypto companies to reconsider their IPO timelines. With public offerings typically dependent on favorable market conditions, firms may delay listings until economic stability returns.
For crypto investors, the coming weeks will be crucial in determining whether Bitcoin’s resilience represents a fundamental shift in its market positioning or merely a temporary deviation from broader economic trends.
