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Without a shadow of a doubt, President Donald Trump’s return to the White House marks the most polarizing shift of political power this century. Trump’s reappointment was followed by multiple eerily timed aviation tragedies, promises of mass deportations and some controversial mandates from Elon Musk. Musk, who heads up the Department of Government Efficiency (DOGE), has called for a return to office for all government employees — a move that some have questioned as a non-legally enforceable scare tactic to reduce headcount.
So, all things considered, the first weeks of Trump’s second presidency have been eventful. To say the least.
As the dust settles on Trump’s reappointment, the President’s new ‘America First’ tariffs have been a source of controversy — with many considering them to hold the greatest ramifications for U.S. and global economies, especially at this juncture.
Related: What Tax Strategies to Use for Bitcoin & Crypto Trading
Per President Trump’s orders, the U.S. will be imposing a 25% tax on goods from Canada and Mexico. There’ll be a further 10% tax on goods from China in hopes of curtailing the exploitation of America by its biggest trading partners. The alleged goal of Trump’s tariffs is to thwart the seemingly uncontrollable flow of narcotics and migrants into the U.S. The idea is that containment of the above may reduce economic waste, crime and inflation in the short and long term, respectively.
The introduction of tariffs might shake things up now, but tariffs are a tool to achieve specific, longer-term objectives. As we move forward, it’s important to remember that we can’t always take things at face value.
Setting the stage for Bitcoin
Contrary to popular opinion, tariffs don’t always equate to net economic losses like most economists claim. While consumer goods will likely increase in price on average, that doesn’t always coincide with a 1:1 loss in sales simply because models can’t account for the complexities of reality.
More specifically, many factors besides price influence one’s decision-making – i.e., build quality, customer service and social signaling. What if Trump is able to deliver on his promise of making America great again, and the incentivized consumption of domestic products and services results in economic surpluses? Models simply don’t account for this.
Few realize that Trump’s tariffs go far beyond merely economic instruments; they are part of a more sophisticated geopolitical strategy. If these measures force a global migration toward quality assets, like gold and Bitcoin, prices will briefly inflate. This is a calculated measure to ensure a more stable economic future grounded in U.S. supremacy.
As a provocation, these tariffs might incentivize countries to better confront the issues regarding the migrant crisis for the U.S. while also putting their trade links into disarray such that they might be more amenable toward adopting currencies like Bitcoin. The real end game here is to foster market conditions that will induce policymakers to create more accommodative monetary policies that ultimately benefit domestic markets and risk assets.
In the short term, we should expect extreme market volatility, soaring credit defaults and disrupted operations for many U.S. companies. In the medium, Powell turns on the money printer to rescue U.S. markets and everyday Americans, all while quietly setting the stage for Bitcoin to emerge as the world’s unexpected savior of global markets and trade.
At present, the move has been disruptive to the crypto market (with some market analysts suggesting the price could fall back to $75,000 by the end of March). The implication in this analysis is that investors may turn bearish on crypto markets as inflation rises — but the reality is that BTC has weathered a lot, come back from worse, and historically proven to be a strong hedge against inflation.
Related: Why Not Owning Bitcoin is Making You Poor
When “strength” is your greatest weakness
America rose to become the undisputed global superpower through a perfectly executed socioeconomic conquest. With the U.S. dollar being the world’s reserve currency, the U.S. not only dominates global mindshare, but it’s also the reason we can borrow cheaply from foreign allies for further economic expansion.
But there’s a problem. The growth we’ve seen stateside and the “all-time highs” we have witnessed are the result of record-breaking consumer debt. The geopolitical benefits of the dollar being recognized as the global tender that propelled America to current heights is the source of its destruction 80 years later. A strong dollar counterintuitively weighs on export-heavy states by weighing on the U.S. trade deficit and lost jobs due to company outsourcing.
Understand that the impact of tariffs far exceeds what meets the eye. There are a lot of factors at play when assessing the health of markets. Price, no pun intended, is probably the most sensitive lever to tug in the eyes of the average American; it’s also the case that markets are due for a correction altogether if we wish to improve affordability. Quantitative Easing (QE) post-crisis lasted entirely too long, leading to historic inflation, and unfortunately, tariffs are Trump’s most effective way to manifest change.
Introducing: The Bitcoin standard
Despite being unofficially dubbed the “Bitcoin President,” the crypto community’s feelings about Trump’s presidency are mixed. While some remain hopeful that the U.S. will establish the Strategic Digital Asset Stockpile, there’s a growing crowd of mentally exhausted degens unsure what to think.
On one hand, it’s good to know that builders in the space no longer have to face frivolous lawsuits enacted by the Securities and Exchange Commission (SEC). However, the temptation remains to question this administration’s understanding and commitment to our industry. Trump has been vocal about supporting Bitcoin’s price, but during what appears to be Bitcoin’s make-or-break moment, Trump incites market hysteria.
I wouldn’t hold my breath for the U.S. government purchases of Bitcoin to be the major upside catalyst this cycle. There’s quite a bit of legislation required to make that happen; however, with a scarce, reflexive asset like Bitcoin, the fear of missing out is what causes its price to skyrocket. Of note, Trump signed an executive order to establish a sovereign wealth fund that will almost certainly be exposed to artificial intelligence (AI) and blockchain.
The key takeaway is that Trump’s words alone validate Bitcoin in a way that history couldn’t have ever predicted. All the while, his actions suggest America’s preparing to confidently stamp its mark on the evolving ‘New World Order’ of global trade and commerce. Given the anticipated duress that lies ahead for the dollar, I wouldn’t be surprised if other countries, particularly smaller nation-states, follow the likes of El Salvador and establish country reserves, ultimately catapulting the asset to new heights.
It’s likely to be underreported, but the fact is that the tribulations that await the average American in 2025 are the result of the U.S. government spectacularly failing its people.
Related: A Bitcoin Hot Girl Summer — Will Bitcoin’s Success Continue?
Irresponsible government spending and the mismanagement of interest rates left Americans more distraught than ever, while the “system” seemed to work equally spectacularly for the elite. It’s unjust, given the sacrifices of the American people are what makes America great. And yet again, here lies the crypto bros being left holding the bag. It’s un-American.
However, whether you like it or not, Trump has kept his promises. He has signed multiple EOs and granted Ross Ulbricht his freedom, ushering in a new era of liberty and transparency. Yes, it’s too early to tell if Trump’s moves are truly intentional or just a ploy to gain the popular vote. Either way, it’s going to be a bumpy ride, so I suggest you find cover and hold on tight to your bags. It’s almost time.
