The role of Bitcoin amid economic turmoil
Market analysis by Inky Cho, Financial Markets Strategist at Exness
If you hold a certain amount of Bitcoin or whether you’re planning to buy some soon, you must be wondering what impact the US tariffs have on the coveted crypto’s price. Undoubtedly, the return of President Donald Trump to the White House arguably marks the most schismatic moment in US politics and geopolitics.
Trump’s reappointment was followed by a deluge of draconic measures, including eerie promises of mass deportations and a series of controversial decisions emanating from Elon Musk, the head of the Department of Government Efficiency (DOGE), has been keeping traders and investors on a string.
The pledge to impose 25% tariffs on imports from Canada and Mexico, and 20% on imported goods from China in his first 100 days in office, made Trump one of the most controversial political figures of the 21st century.
But “tariffs” is not the only “most beautiful word in the English dictionary,” according to the US President. The word “cryptocurrency” also carries particular significance, as he promised to enact a series of deregulation measures aimed at bolstering Bitcoin and altcoins’ value. To that end, he signed an executive order that serves as the foundation for a so-called “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” which will include Bitcoin alongside other cryptocurrencies.
The funds will be held with digital currencies forfeited to the federal government as part of legal proceedings. According to David Sacks, the White House AI and crypto “czar,” this reserve will be “a digital Fort Knox for the cryptocurrency,” which he likened to the Kentucky military base that stores a significant amount of US gold assets.
Amid a wave of polarizing reaction from crypto enthusiasts, some of whom criticized the government for not taking a bolder stance, while others questioned the transparency of the process.
Sacks has reportedly ordered a full…
