Don’t Buy Crypto Until Tariff Tensions Ease
Bitcoin and Ethereum have proven to be fairly resilient against global economic headwinds. That being said, the latest bout of aggressive tariff activity from Trump introduces a new risk that investors cannot ignore.
His newly announced tariffs—some as much as 145% on Chinese goods and 10% minimum on others—have sent shockwaves through financial markets. Then China made retaliatory 125% tariffs on the U.S goods. So, all those rapid movements led to a huge drop in major indices, like the S&P 500.
BlackRock CEO Larry Fink is very worried and thinks that these tariffs can pull America into recession because there is less consumer demand and people are starting to panic buy. Contributing to the market uncertainty is Trump’s mercurial style.
Having fought to impose tough tariffs, he then announced a 90-day pause for some nations, but not China. This kind of unpredictability creates questions about the stability and direction of U.S. trade policy under his leadership.
On the surface, the U.S. appears to be leaning more toward crypto adoption, with efforts underway to build a national Bitcoin reserve and incorporate coins like Solana, Cardano, and Ripple into federal digital asset holdings. But while this signals long-term institutional interest, the short-term environment remains too unstable for confident investment.
Given the growing tensions from the tariff war and the potential for global retaliation, investors face an unpredictable landscape. Until there’s a clearer resolution to these trade conflicts and more consistent policy direction, it may be smarter to hold off on crypto investments. Staying away from crypto could prevent major losses later.
