Trump Tariffs Provide Limited Strategic Opportunity to Buy Bitcoin

The much-dreaded Trump tariffs are here, with the new US President enforcing up to 50% additional duties on imported goods from friends and foes alike. Top markets reported heavy losses with the S&P 500 falling close to 5%, Dow Jones 4%, and Nasdaq suffering a 6% decline. However, premier cryptocurrency Bitcoin has resisted the recent downward price pressure and has remained steadfast above $81k.

Trump styled the aggressive April 3 move as “Liberation Day” for the USA, but it could result in a massive trade war worldwide, leading to another major economic recession. Affected entities, including America’s allies like Canada, the European Union, and others, have already announced retaliatory measures, and adversaries like China have followed suit.

Bitcoin remains the only major asset that has held onto its price levels going into the weekend. The top cryptocurrency by market capitalization initially fell 5% to nearly $81k. Still, it has since recovered some of these losses and is sitting relatively comfortably at $84k, reversing the downward trend entirely.

Bitcoin’s Strategic Buying Opportunity

Bitcoin’s recent price stability in the face of a major American-initiated trade war offers insight into the future of global economics. The primary reason Bitcoin is showing incredible resilience is the US Dollar’s threatened status as the global reserve currency. 

The US’s financial burden is breaking new records at a rapid pace. The national debt has crossed $33 trillion, and for the first time in the country’s history, interest payments on this gigantic figure will exceed the national defense budget of $950 billion. Within the next six years, the interest on debt will likely surpass all US government tax collections and other sources of revenue.

According to Larry Fink, the CEO of major investment bank BlackRock:

“If the U.S. doesn’t get its debt under control… America risks losing that position to digital assets like Bitcoin,”

Previously, Bitcoin promoters used the same logic, but here, we have the CEO of the largest bank in the world actually using it in his communique with the investors. This shows that BTC has come a long way in recent years. 

The stable performance of the top digital coin has resulted in investors looking at the cryptocurrency with renewed enthusiasm, not as a speculative asset but a long-term store of value similar to Gold. 

According to leading financial author and commentator Morgen Rochard:

“Bitcoin isn’t a stock pick. It’s an opt-out button.”

As Bitcoin continues to offer a much more stable alternative to the uneasiness of the global markets under the cusp of a trade war, it will continue to prove its worth as a serious investment tool.