In 2025, the legacy of Donald Trump’s trade policies will come roaring back into focus. His administration’s sweeping tariffs on imports, especially those affecting China, Mexico, and Europe, are once again shaking the financial world. Markets are reacting sharply, and even cryptocurrency is being affected.
However, perhaps surprisingly, while stocks have wobbled under the pressure of fresh trade uncertainty, some analysts are arguing that Bitcoin and other digital assets could actually benefit from the disruption.
So, what’s really happening behind the scenes? And how does it affect investors here in Australia and beyond?
In this post, we’ll break it all down.
Trump’s Tariffs: A Recap and Reawakening
Trump’s first round of tariffs between 2018 and 2020 targeted hundreds of billions of dollars’ worth of goods. His reasoning was to protect American industries and force better trade terms.
However, the broader effect of implementing them was a major disruption of global supply chains, higher costs for businesses, and widespread market jitters.
Fast-forward to 2025, and Trump’s campaign talk of “Liberation Day” tariffs, involving sweeping new measures on imports, has spooked global investors again.
Stocks have slumped sharply, and according to Reuters, major crypto-linked stocks like Coinbase, Marathon Digital, and Riot Platforms all plunged in early April 2025 following Trump’s latest tariff pledges. Bitcoin (which Australian investors can purchase from Bitcoin.com.au) itself dropped about 2.4% in the immediate aftermath, while Ether sank more than 5%.
This broad selloff shows that even the crypto sector isn’t immune to political shocks, at least in the short term.
Why Tariffs Might Actually Help Bitcoin in the Long Run
While initial market reactions were rocky, several crypto experts have suggested that tariffs could, paradoxically, strengthen Bitcoin’s long-term position. Here’s why:
1. Tariffs Undermine Confidence in Traditional Markets
New trade barriers inject uncertainty into global supply chains, corporate profits, and economic forecasts. Over time, this weakens confidence in traditional assets like equities and government bonds.
Over the course of its 15-year history, Bitcoin has thrived in environments where people have lost trust in traditional financial systems. So, who is to say it won’t do so now?
2. Rising Inflation Boosts Bitcoin’s Appeal
Tariffs tend to drive up the cost of goods. Therefore, inflationary pressures could push more investors towards Bitcoin, as it is often seen as a hedge against fiat currency devaluation.
If the cost of living keeps rising, assets with a fixed supply, like Bitcoin, may well become an increasingly attractive proposition.
3. Bitcoin’s Borderless Nature Becomes an Asset
While tariffs complicate international trade in physical goods, Bitcoin remains borderless and decentralised.
As it doesn’t rely on national economies or trade agreements, in a world fractured by tariffs and protectionism, Bitcoin could emerge as a more frictionless way to move value globally.
Short-Term Pain, Long-Term Gain?
It’s important to remember that Bitcoin isn’t immune to broader market shocks, because when investor panic hits, all risk assets, including crypto, tend to result in mass selloffs.
For this reason, Bitcoin’s correlation with stock markets, especially tech stocks, means that short-term price dips are likely during periods of tariff-induced uncertainty. However, once the dust settles, Bitcoin’s fundamental advantages of scarcity, decentralisation, and portability may well hold it in good stead.
Let’s not forget that during the 2018–2020 trade wars, Bitcoin’s price actually rose significantly over time despite early turbulence. There’s good reason to believe history could repeat itself.
How Crypto Markets Are Evolving in a Tariff-Rattled World
The crypto ecosystem itself is much larger and more sophisticated than it was during the first Trump tariff wars. Here are some of the key shifts that seem to be happening right now:
1. Growing Institutional Involvement
Currently, major asset managers and hedge funds appear to be allocating part of their portfolios to Bitcoin. Institutional players tend to be more resilient during market turbulence, which traditionally provides a more stabilising force compared to retail-driven markets in the past.
2. Development of Layer 2 Solutions
Bitcoin and Ethereum now have faster, cheaper transaction layers (like the Lightning Network), which makes them more practical for everyday cross-border payments. This can be a very handy feature when global trade gets messy.
3. Wider Adoption in Emerging Markets
Countries dealing with unstable currencies or heavy U.S. trade restrictions are increasingly embracing crypto. Bitcoin’s relevance as a store of value and medium of exchange is growing around the world, but most notably in places like Argentina, Nigeria, and Turkey.
Should You Consider Crypto Right Now?
While nobody can predict the future with certainty, it’s clear that crypto is increasingly positioned as a counterweight to traditional financial risks, including those caused by tariffs.
We won’t tell you either way to add Bitcoin to your portfolio right now. But if it is something you want to do, here are a few tips:
- Trade policies can move markets overnight. So, stay informed by following not just crypto news, but also broader political and economic developments as regularly as you can.
- Crypto can be part of a balanced investment strategy. However, it might not be wise not to put all your eggs in one basket, so it might be a good idea to diversify.
- Regardless of whether you’re a first-timer or an experienced trader, using a trusted platform like Bitcoin.com.au will guarantee that your transactions are secure and compliant with Australian regulations.
- Volatility is part and parcel of crypto investing. So, it is worth focusing on the bigger picture rather than short-term price swings.
