Bitcoin price is currently on a downward trend; however, the ongoing trade war initiated by Donald Trump may spur a bullish outlook for Bitcoin by 2025. Investors renowned for their ‘diamond hands’ might need to hold onto their assets tightly as market conditions fluctuate.

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

Factors affecting the market include the anticipated end of a potential Q4 2024 bull run, which can be attributed to the tariffs imposed by Donald Trump on Canada, Mexico, and China. On February 1, 2025, a 25% tariff was placed on imports from Canada and Mexico, as well as a 10% tariff on Chinese goods.

Market responses have reflected a tendency for capital to shift from risky assets like Bitcoin to safer alternatives such as bonds and cash.

Bitcoin Price Drop

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Despite recent price declines, financial analysts suggest that these same tariffs might ultimately lead to a bullish resurgence for Bitcoin as the U.S. dollar weakens in global exchanges.

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

Jeff Park from Bitwise posits that with bond yields dropping, Bitcoin could become a preferred investment option. The strategy behind the tariff initiates may be to lower the dollar value, enhancing competitive pricing for U.S. exports.

“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.”

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

Analyzing the market’s response to increasing tariffs will be critical. A slowdown in the economy coupled with rising inflation could afford Bitcoin an advantageous position, though its short-term price performance may prove challenging. With current prices struggling to maintain above the $100,000 threshold, future movements are contingent on reclaiming critical resistance levels.

Explore more: Crypto Trends For Bullrun – January 2025 | Join The 99Bitcoins News Discord For Updates