Did we get it wrong?

[Davidvictorson]

No we did not get it wrong because bitcoin is not fiat and fiat is not bitcoin. Bitcoin wasn't created to be affected by any economic policy globally. And so we shouldn't be expecting it. It would be crazy it such is happening, it will become totally unattractive to investors. In my estimation, any unattractive economic policy for fiat should be the time for bitcoin to shine and make people invest more in it and should be able to do it fast. And this is not specifically to what is happeningin the US but in economies and goverments across the world.

[Mate2237]

The tariffs that was implemented by the president of the united states where all political and was done with respect to the benefits of the united states economy according to trump so I I was not one of those people who thought that the tariffs that was introduced by trump was really going to have an effects on Bitcoin which will impact on its price negatively on the long run Bitcoin has done well ever since the implementation of this tariffs.




This tariffs has even given Bitcoin an opportunity as people has now seen Bitcoin as an alternative source of payment when it comes to international trade this whole trade face-off is about trade and political dominance by the United States so Bitcoin offers another avenue for people to use and transact business reducing their dependency on the use of the united states dollar

[Zigabel]

Bitcoin is valued mostly in the US dollar,  I mean 1 Bitcoins worth is mostly measured primarily in the US dollar before further convention to other local currencies so there's almost no way Bitcoin will have battles with the dollar in which is almost like it's unit of value, the Trump policy may affect the UC economy and cause some probable temporary ranchos but I believe the strength of the US economy is such they will make all moves possible to get it fixed should such arise.

Generally the world economy now is experiencing some up amd down movement simultaneously without an actual point stability but isn't at the moment a chaotic one that will raise brows enough to make relativity around the US dollar and Bitcoin,  there's this independence with Bitcoin that makes not to be affected completely by all of this but somehow gives it an advantage,  most likely, either ways Bitcoin still maintains some strength such that there's no cause for alarm at the moment.

[free-bit.co.in]

Was there an assumption that Trump's tariffs would cause for the economy to go down and drag bitcoin with it?

Not exactly.
1. The tariff war is mostly creating disruption in the world and it causes uncertainty which means people are less willing to invest into something that has higher risk than traditional assets such as gold. This means bitcoin will have trouble rising (that doesn't mean it would drop though).
2. The next effect is going to be inflation in the US as tariffs will increase price of a lot of things (as it already has in the USA). Inflation is generally considered a positive force that can contribute to bitcoin's price rise.
3. But as we know governments battle inflation by increasing interest rates. The rates are already high and they are causing recession, increasing them would worsen the recession. And based on the past we know that during recession bitcoin price drops.
These are generally the 3 main factors that should be considered when we want to analyze what effects the Trump's tariff war has on bitcoin price.

Inflation is rising because of Donald Trump's decision to impose tariffs on some countries. NY Fed's Williams expects a 1% hit to inflation, with growth slowing and of course that means unemployment is going to rise. That will weaken the value of dollar and also the return or interest of fixed income places like bonds or treasury bills are going to take a hit. That is why investors are going to look towards BTC and gold. But still higher inflation might force the Fed to hold rates steady or even hike, which could pressure risk assets like bitcoin short term. But if the central banks actually do decide to cut the interest rates, dollar is not going to be popular between investors anymore and it is going to be bitcoin virtual see a rise in value. Macro's messy, but bitcoin friendly policy and changing investor flows could tilt the scales in Bitcoin's favor.

[pooya87]

But my question has been isn’t bitcoin decentralized enough that as major countries and huge institutions are coming into it, a singular country’s crisis might have much impact on it. For me it is in the past that trump policy can heavily affect bitcoin not that I undermine US as a leading economical country but I think except tariff policy affects other top countries it effect wouldn’t be much

If the economic effects (including inflation and recession) are limited to one country only, then the effects on bitcoin price are going to be very limited. But this tariff war is a global war that is affecting a lot of countries. For example when a country's exports decrease due to these tariffs, they may face recession of their own as their economy slows down.

[X-ray]

Honestly nobody knows what an impact the tariff will give, but people are shifting to an asset that appreciates and outperform paper money. Bitcoin in this case has become hedge against inflation and money printing.

Apparently some of the deals that the US got from tariff looks pretty good to combat trade deficit although I don't know how the tariff will play out long term, for all I know it it's still very uncertain with the effect, there is also problem where trump is being too harsh on the allied country with the tariff like to canada.

[Iranus]

Interestingly  US government under President Trump as of March 2025 has shown more interest in Bitcoin by creating Strategic Bitcoin Reserve which suggests they see it as potentially important asset for country and this focus could grow if dollar weakens. Your thoughts on how government policies affect traditional money and Bitcoin are very much part of ongoing financial discussions and how these factors play out will be crucial for global economy.

This is not entirely true, Trump's strategic bitcoin reserve is just an executive order, not a Act, and that means it could be repealed by Trump or another president at any time.

We are in crypto week and congress just passed 1 of 3 important crypto bills and ironically none of them are directly related to bitcoin. Among them is the quickly passed GENIUS Act, a bill related to stablecoin. That means they are looking to strengthen the USD position through stablecoins.

They don't take bitcoin seriously and see it as a potential asset for their country like you think. They are still looking to strengthen their USD position and this time they are using crypto to do it.

https://www.wired.com/story/genius-act-congress-crypto-law-passes/

[yhiaali3]

Will bitcoin really beat the US dollar? The answer (in my opinion) is: perhaps in the long run but no at the moment. Despite all the economic problems facing the United States, the dollar remains the strongest and most dominant currency in the world. On the other hand, Bitcoin is still not widely accepted globally.

Dethroning the dollar requires many factors. First, it requires a decline in US political and economic hegemony over the world, because the dollar's dominance is linked to it. As long as the United States remains the world's foremost power, the dollar will remain dominant, and it will be difficult for any other currency, not Bitcoin or any other, to overtake the dollar.

[peter0425]

Bitcoin is valued mostly in the US dollar,  I mean 1 Bitcoins worth is mostly measured primarily in the US dollar before further convention to other local currencies so there's almost no way Bitcoin will have battles with the dollar in which is almost like it's unit of value, the Trump policy may affect the UC economy and cause some probable temporary ranchos but I believe the strength of the US economy is such they will make all moves possible to get it fixed should such arise.

I find it hard the connection between having US Dollar as the global or standard conversion currency when it is the world currency after all so it is just natural for anything and bitcoin's equivalent to be shown in US dollar. This doesn't mean that bitcoin can't compete with the US dollar anymore.

[melinoe]

Bitcoin is valued mostly in the US dollar,  I mean 1 Bitcoins worth is mostly measured primarily in the US dollar before further convention to other local currencies so there's almost no way Bitcoin will have battles with the dollar in which is almost like it's unit of value, the Trump policy may affect the UC economy and cause some probable temporary ranchos but I believe the strength of the US economy is such they will make all moves possible to get it fixed should such arise.

I find it hard the connection between having US Dollar as the global or standard conversion currency when it is the world currency after all so it is just natural for anything and bitcoin's equivalent to be shown in US dollar. This doesn't mean that bitcoin can't compete with the US dollar anymore.

I too support this take: Dollar is just the standard, and that's why BTC's price is shown in it: much more people would get the idea of what it's worth than to show it some other fiat currency, imo.

[Zaguru12]

I too support this take: Dollar is just the standard, and that's why BTC's price is shown in it: much more people would get the idea of what it's worth than to show it some other fiat currency, imo.

There is not like a standard world currency, the US dollar is simply the most traded currency in the market and even considered as the highest reserve currency but that doesn’t mean it is the standard because it is not. It is on the basis of been the most trading currency that most aggregators or exchanges usually use it as the default currency when comparing bitcoin with fiat. This doesn’t mean it is what everyone uses or is the standard. Most people usually use their own country’s currency as the pair with bitcoin and not bitcoin.

Bitcoin surpassing dollar shouldn’t even be discussed because it’s doesn’t sound right as the bitcoin isn’t here to actually compete with any fiat. In terms of future global use case yes bitcoin is decentralized and as such can be use by many, should this current dedollarization issue continue then dollar might losses more global use while bitcoin is gradually growing more to been used