As anticipation builds for President Trump’s “Liberation Day” announcement of sweeping new tariffs, global markets are flashing red. Investors are bracing for economic fallout, and crypto markets are under pressure — but some analysts believe Bitcoin may ultimately benefit from the uncertainty.
So far, the return of a pro-crypto administration hasn’t produced the rally many investors had hoped for. Bitcoin surged past $100,000 in early January on optimism around regulatory reform and rumors of a U.S. Bitcoin reserve policy. But that momentum didn’t last. BTC has since slipped back into the $80,000 range and struggled to regain traction.
The drag on prices stems in part from Bitcoin’s increasing link to broader markets. “Bitcoin has become more sensitive to macro risk,” said Marc Ostwald, Chief Economist at ADM Investor Services. “When fear takes over, investors rush to safer assets — and right now, that’s still gold.”
With traditional assets like equities and bonds already feeling the heat from economic headwinds, the prospect of fresh tariffs has only intensified caution. Tariffs — import taxes designed to protect domestic industries — can raise costs, slow trade, and spark retaliatory measures, all of which are weighing on sentiment.
Gold, meanwhile, is having a strong year, up 18% as central banks continue shifting away from the U.S. dollar. Bitcoin has yet to fully replace gold as a hedge, but some believe that change is coming.
“Bitcoin’s role is evolving,” said Omid Malekan, a professor at Columbia Business School and blockchain author. “There’s no question it gets treated like a risk asset in some circles, but it’s also increasingly being viewed as a store of value. That dual identity could turn into an advantage.”
Malekan says the uncertainty caused by tariffs could force more investors to reconsider their assumptions about the dollar — and start exploring decentralized alternatives like Bitcoin.
There are signs that markets are already adjusting. Zach Pandl, Head of Research at Grayscale, says much of the negative impact from tariffs has already been factored into asset prices. He believes Wednesday’s announcement, set for 4 p.m. ET, could surprise to the upside — if it brings clarity.
“If the announcement is targeted and phased in, rather than chaotic or overly aggressive, that could calm markets,” said Pandl. “It would give crypto a chance to shift back into focus based on fundamentals.”
Among those fundamentals: institutional interest continues to grow. The upcoming IPO of Circle is one indicator that confidence in digital assets remains resilient, even in the face of short-term volatility.
Pandl also believes the broader implications of Trump’s tariff strategy could work in Bitcoin’s favor over time.
“These trade policies may chip away at the global role of the dollar,” he said. “As countries and investors look for alternatives, Bitcoin stands to benefit.”
While the short-term market narrative has been dominated by fear, Pandl remains bullish. “We’re not just looking at charts,” he added. “We’re watching a structural shift in how people think about money. And Bitcoin is right in the middle of it.”
For now, investors wait to see how Liberation Day unfolds. But beneath the surface, a deeper story may be developing — one in which economic disruption becomes the catalyst for Bitcoin’s next big chapter.
