Bitcoin Magazine: Buying and Holding Bitcoin Is the Best Strategy to Navigate the Trump Tariff War
Investors are shifting their views on markets following a renewed trade war, kicked off by proposed jumps in tariffs. Changing tariff rates can impact the flow of global trade, lead to shortages of some goods, and otherwise add some chaos to the economy.
That includes causing inflation to tick higher. So far, the actual tariff changes have been minimal. But proposals for big, bold tariffs likely mean more volatility ahead.
In theory, that should be good for bitcoin. As an asset, it’s capable of moving globally in seconds without respect to trade barriers. However, the price it trades at could fluctuate wildly amid market disturbances.
Last weekend, as the tariff news came out, the crypto market sank. And it’s clear that leveraged traders were taken out by the rapid decline in cryptocurrency prices. Ethereum, the second largest crypto, sank by over 30% in just a few hours. That’s typical of the Wild West days of crypto, which many thought were over.
Even bitcoin sank to the low $90,000 range. However, the king of crypto managed to jump back higher the next day, as investors piled back in. This trading move in crypto suggests bitcoin has strong demand behind it. And it may be setting up for a new leg higher to new all-time highs.
If that happens, other cryptos should take off as well. But given the uncertainty in markets, bitcoin is the best crypto asset to hold amid risky conditions.