- New U.S. tariffs intensify global market losses, increasing inflation fears and weakening fiat currencies.
- Focus turns to Bitcoin as a hedge during economic stress, with investors eyeing long-term crypto gains amid tariff-driven shifts.
- Altcoins enter “Opportunity Zones,” indicating potential dip-buying phases as on-chain data shows realized losses.
U.S President Donald Trump confirmed he will not pause new tariffs, instead allowing time for negotiations with foreign counterparts. Asian and European markets reacted swiftly, extending consecutive losses as global supply chains face increasing pressure. The rising trade tensions have also led to debates about alternative assets like cryptocurrency.
Rising Tariffs Fuel Inflation and Monetary Changes
The imposition of higher tariffs has raised concerns about price hikes and inflation across multiple regions. According to crypto investor Rudo Viljoen, such inflationary environments tend to weaken fiat currencies.
A weaker U.S. dollar often benefits decentralized assets like Bitcoin, which operate independently of national monetary systems. Viljoen also pointed out that increased government intervention through tariffs may raise broader doubts about centralized economic systems.
This environment, he argued, could drive interest toward permissionless and decentralized financial alternatives. Modernizing economies and digital outlook could further support the adoption of crypto assets.
Investors React to Market Stress
Binance CEO Richard Teng acknowledged the growing risk off sentiment among investors, driven by short term macro uncertainty. However, he stated that Bitcoin still holds substantial recovery potential.
Teng emphasized that Bitcoin is gaining favor as a non-sovereign store of value, especially during economic stress. Meanwhile, investor Crypto Patel noted that the rollout of new U.S. tariffs is redrawing the global market map.
According to Patel, while most focus on rising costs, others are repositioning for long term gains. Patel noted that the current shifts may be critical inflection points for capital flows into alternative assets like crypto.
On-Chain Metrics Show Dip-Buying Opportunities
Santiment analysts observed that altcoins are now entering what they describe as “Opportunity Zones” based on mid-term timeframes.
The MVRV Divergence model has shown substantial realized losses across crypto assets. These losses may attract investors looking to accumulate at discounted prices. However, Santiment also noted the unpredictable nature of current events.
Similar to the early COVID-19 period, market behavior may defy conventional trends. A resolution to the ongoing global tariff disputes, the firm added, would likely lead to a swift recovery across the crypto market.
