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Bitcoin Prediction Suggests Skyrocket As Trump Trade War Takes Hold

By Dalmas Ngetich

Last Updated: Feb 3, 2025

Fact checked

By Sam Cooling

Bitcoin price is falling when writing, but Donald Trump trade war might actually be bullish for Trump Bitcoin prediction in 2025 - here's why.

Bitcoin price is falling when writing, but Donald Trump trade war might actually be bullish for Trump Bitcoin prediction in 2025 – here’s why.

You must have the so-called “Diamond hands” to hold onto your Bitcoin Price Volume in 24h Price 7d right now. The world’s most valuable and stable coin dropped by over $8,000 in less than three days. By last Friday, it was trading at well over $104,000.

However, prices tanked to as low as $91,500 earlier today over what can only be described as a tumultuous weekend.

Trump Trade War and Tariffs on Canada, China, and Mexico

There are various market factors to consider, including the possibility of the Q4 2024 bull run ending, but Donald Trump’s tariffs on Mexico and Canada are largely to blame.

On February 1, the United States imposed a 25% tariff on all imports from Canada and Mexico and a 10% tariff on goods from China.

Although Canada retaliated, the impact was minimal. As seen in Trump’s first term, tariffs tend to create anxiety and market uncertainty—a move investors hate. As expected, capital flew from risk-on assets, including Bitcoin and crypto, to safer assets like bonds and cash.

Despite concerns, financial analysts believe the very same reason why Bitcoin plunged over the weekend is what will propel it to record highs in the coming years. As the United States imposes strict tariffs on “friendly” nations, the greenback will likely weaken in the global markets.

Why Buy Bitcoin Now: Is Crypto The Ultimate Hedge From US Equities?

In a post on X, Jeff Park, the head of alpha strategies at the spot Bitcoin ETF issuer, Bitwise, said that coupled with falling bond yields, investors might consider other options, one of which is Bitcoin.

Park argues that Donald Trump is being strategic and is deliberately weakening the greenback to gain an edge in the export market. A weak USD also means the Trump administration can easily correct existing trade imbalances and make local products more competitive internationally.

If anything, the analyst said this could be akin to a “Plaza Accord 2.0,” where the original agreement was struck between the United States and several countries, including Japan and France, to weaken the greenback.

Reading from this game plan, it is clear that risk-on assets like equities and crypto, mainly Bitcoin, remain bullish in the long term and are the “only asset to own.”

What’s Next for Bitcoin Price in Q1, 2025?

Watching how the markets handle these waves of restrictions from the United States will be interesting.

The more tariffs imposed, the slower the economy grows, and the faster inflation rises.

The latter will favor Bitcoin, but if the economy is not growing as fast as expected, then despite rising inflation, capital might be restricted to cash and bonds.

For these reasons, the short-term price action for Bitcoin and altcoins will be challenging.

From the daily chart, BTC is still struggling to contain losses. Although there are attempts to push prices higher, Bitcoin is still below $100,000.

Bitcoin is falling when writing but Donald Trump's tariffs on China, Canada, and Mexico will propel crypto prices to record highs

(BTCUSDT)

For the trend to continue, Bitcoin must spike higher and reclaim $105,000. On the flip side, any continuation that forces the coin below $90,000 may trigger panic, forcing a dump back to the $75,000 zone.

EXPLORE: Crypto Trends For Bullrun – January 2025

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Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital. 99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.
Dalmas Ngetich
Dalmas Ngetich
Crypto Journalist

Dalmas is an experienced journalist with over a decade in crypto, technology, and blockchain. His work and that of his partners have been featured in top news outlets, including Forbes, investing.com, and Entrepreneur, among others. He is passionate about crypto... Read More

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