Bitcoin has been holding strong even though the stock market has been going through a rough time. However, experts believe this might not last.
In a recent tweet, Analysts at Matrixport say Bitcoin could start moving in the same direction as the stock market, especially after Donald Trump’s new tariff plans. The president is expected to introduce tariffs on 15 countries, including China, Canada, and Mexico.
Because of this, investors may start pulling their money out of risky assets like Bitcoin, which could cause its price to drop.
Crypto analyst Markus Thielen also believes that Bitcoin’s price will move in line with equities due to the broader market shift.
He pointed out that Bitcoin’s funding rates are only slightly positive, and fewer people are trading right now. The market is showing signs of caution. Traders are hesitant to make big moves. This means investors are playing it safe and waiting to see what happens.
CoinPanel CEO Aran Hawker also explained how big economic changes, like tariffs, can affect Bitcoin. “The Nasdaq’s role as a lead indicator in the current risk-off move offers a useful benchmark for attributing parallel weakness across the digital assets market,” he said. In simple terms, if the stock market goes down, Bitcoin might go down too.
Meanwhile, Bitcoin’s price has been fluctuating for the last few weeks. It went up to a record $108,000 in January but then dropped below $90,000 last week. Now, with Trump’s tariff plan coming, some experts believe this could actually help Bitcoin in the long run.
Columbia Business School professor Omid Malekan says Bitcoin could become a safe asset, just like gold. “Bitcoin has found footing in some circles as ‘digital gold,’ and the physical variety is soaring on the tariff news,” he said. Some investors may start seeing Bitcoin as a safer place to put their money.
However, not everyone agrees. Economist Peter Schiff, a long-time Bitcoin critic, says Bitcoin is too risky. He called it a “digital risk” and argues that its price is too unstable to be a safe investment like gold.
With Trump’s tariff plans coming, Bitcoin’s future is uncertain. Some experts believe it will drop alongside stocks, while others think it could grow stronger.
Also Read: Crypto Market Stumbles Amid Tariff Threats, Inflation Fears
