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
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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.
This is the only thing you need to read about tariffs to understand Bitcoin for 2025. This is undoubtedly my highest conviction macro trade for the year: Plaza Accord 2.0 is coming.
Bookmark this and revisit as the financial war unravels sending Bitcoin violently higher. pic.twitter.com/WxMB36Yv8o
— Jeff Park (@dgt10011) February 2, 2025
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.
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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.
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The post Bitcoin Prediction Suggests Skyrocket As Trump Trade War Takes Hold appeared first on 99Bitcoins.
