{"id":45270,"date":"2025-03-17T10:52:46","date_gmt":"2025-03-17T10:52:46","guid":{"rendered":"https:\/\/crypto-globe.com\/?p=45270"},"modified":"2025-03-17T10:56:20","modified_gmt":"2025-03-17T10:56:20","slug":"is-the-bitcoin-bull-market-at-risk-due-to-us-recession-fears-not-exactly","status":"publish","type":"post","link":"https:\/\/crypto-globe.com\/en\/is-the-bitcoin-bull-market-at-risk-due-to-us-recession-fears-not-exactly\/","title":{"rendered":"Is the bitcoin bull market at risk due to US recession fears? Not exactly"},"content":{"rendered":"\n

US tariffs are increasing bitcoin volatility, but there could be positive implications for the BTC price.<\/strong> During the first three months of his presidency, Donald Trump has sparked trade tensions by imposing tariffs on Canada, Mexico and China.<\/strong> The events led to unexpected turmoil in the US and global markets.<\/strong><\/p>\n\n\n\n

Tariff policy and its impact on cryptocurrencies<\/strong><\/h2>\n\n\n\n

The impact of the tariff measures quickly had an impact on the cryptocurrency market. On March 8, the US President backed off some tariffs on Mexican and Canadian goods, bringing further uncertainty to financial markets. Singapore-based QCP Capital<\/a> warned that cryptocurrency markets are experiencing extreme volatility as they remain closely linked to stock indices and react to macroeconomic changes. According to former U.S. Treasury Secretary Lawrence Summers, tariff policies have already reduced the value of U.S. stocks by $2 trillion and triggered an increase in market uncertainty. Growing trade war fears are affecting investor sentiment, which is reflected in bitcoin movements.<\/p>\n\n\n\n

While tariffs may put short-term pressure on the bitcoin price, fundamental factors remain constant. Should a trade war weaken the dollar and increase inflation, bitcoin could serve as a safe haven for investors fleeing the devaluation of fiat currencies. It is this uncertainty that has led to the cumulative capital inflows into bitcoin<\/a> ETFs, which reached a record $10 billion after Trump’s victory. However, since February, these funds have begun to see significant capital outflows, suggesting that the market is reacting to the broader economic situation rather than the administration’s support for cryptocurrencies per se.<\/p>\n\n\n\n

Tariffs as a policy tool, not a market threat<\/strong><\/h2>\n\n\n\n

Following Trump’s victory, bitcoin initially surged from $69,374 to a record $108,786, but later weakened below $80,000. This decline suggests that despite the political support for cryptocurrencies, macroeconomic factors are playing a key role. While some investors had hoped that Trump’s<\/a> policies would send bitcoin even higher, the reality remains that trade wars and fiscal austerity are affecting the entire market and may be reducing the amount of capital available for investment in risk assets.<\/p>\n\n\n\n

According to Bob Wallden, head of trading at Abra, the tariffs are only a short-term factor that affects investor sentiment but does not change fundamental market conditions. “Trump uses tariffs as a negotiating tool, but their actual impact on cryptocurrencies is minimal,<\/strong> ” he said. The main driver of the markets remains US fiscal policy, which limits the amount of cash available and thus has a much bigger impact on the cryptocurrency<\/a> sector than tariffs.<\/p>\n","protected":false},"excerpt":{"rendered":"

US tariffs are increasing bitcoin volatility, but there could be positive implications for the BTC price. During the first three months of his presidency, Donald Trump has sparked trade tensions by imposing tariffs on Canada, Mexico and China. The events led to unexpected turmoil in the US and global markets. Tariff policy and its impact […]<\/p>\n","protected":false},"author":2,"featured_media":45263,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[162],"tags":[99,93],"class_list":["post-45270","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","tag-bitcoin-en","tag-cryptocurrencies"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t