Tariffs and Bitcoin, what is the connection?

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The world’s biggest economies are at each other’s throats. China and the US are slapping tariffs left and right like it’s a game of economic dodgeball.

Bitcoin suddenly starts looking like the only guy in the room who’s not panicking.

Tariffs is the gift that keeps on taking

Tariffs, in case you missed the memo, are just taxes on stuff coming into the country. The idea is to make foreign goods pricier, so local businesses get a fighting chance.

But while politicians love to talk about protecting jobs, what you usually get is higher prices at the store and a whole lot of confusion in the markets. It’s like trying to fix a leaky pipe by flooding the basement.

Now, with President Trump back in the headlines, tossing around tariffs like confetti and putting out non-tariff cheating lists, investors are getting jittery.

The threat of inflation is real, prices go up, your paycheck buys less, and suddenly everyone’s looking for a safe place to stash their cash.

If only we have a debasement-resistant monetary asset. That would be cool.

Bitcoin

Enter Bitcoin, stage left. This thing isn’t run by any government, can’t be printed at will, and doesn’t care about borders.

When tariffs hit and the dollar starts looking shaky, Bitcoin’s fixed supply and nobody’s boss attitude make it look pretty attractive.

“Tariffs are inflation in disguise. As tariffs escalate, global trust in USD weakens. Capital starts seeking neutral ground. Bitcoin… becomes the logical alternative.”

And let’s not forget the drama overseas. China’s threatening payback, Japan’s not playing ball, and the whole world seems ready to throw down over trade.

In this chaos, Bitcoin’s appeal as a borderless, non-sovereign asset just keeps growing.

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Smart money loves a little chaos?

When the markets get spooked by geopolitical tension, Bitcoin often bounces back faster than stocks or even gold.

And lately, the numbers back this theory up, Bitcoin shot up to a six-week high of $89,200, an 18% jump from its latest low.

On the other hand, the S&P 500 and Nasdaq are tanking, with trillions wiped out since April. Gold’s hitting records too, but Bitcoin’s dominance in the crypto market is now 61%.

Also, worth to remember that when tariffs were slapped on Canada and Mexico earlier this year, Bitcoin took a hard dip, wiping out nearly a billion in value overnight.

Investors still treat crypto like a high-stakes poker game, when the going gets tough, a lot of people cash out. And if tariffs hit mining hardware, even the digital gold could lose some of its shine.

Have you read it yet? Unichain just surpassed $322 million TVL

Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.

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