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Market Update: Bitcoin Weakens

The U.S. trade policy under former President Trump continues to cause unease in financial markets.

By Mike Hesp
• 2 min read
Market Update: Bitcoin Weakens

The U.S. trade policy under former President Trump continues to stir unease in the financial markets. After a federal court struck down the tariffs imposed by Trump, a legal countermove followed: the U.S. Department of Commerce successfully appealed. According to NBC News, the earlier decision to pause the tariffs was reversed again, and that has left its mark on the crypto market.

While a pause on import tariffs is typically good news for global equities, this legal ping-pong is actually paralyzing Bitcoin and the rest of the crypto market. The import tariffs are back in effect for now, and the market is nervous. Asian stock markets open under pressure, as do most major cryptocurrencies.

Bitcoin is down nearly 2% on the day, while Ether is down around 4%. The sharpest losses are in Ethereum Layer-2 projects like Arbitrum (ARB) and Optimism (OP), both down almost 14%. Memecoins are getting hit too: the five most popular have fallen between 7% and 12%.

Still, there is reason for hope despite this short‑term political turbulence. Fundamentals are stacking up with positive signals.

In Pakistan, there are plans to build national Bitcoin reserves. At the same time, BlackRock is pursuing a new strategic crypto investment, which insiders say could be significant. In the EU, the reach of regulated crypto firms is expanding: the major trading platform ByBit has officially received an MiCA license from the Austrian regulator, a key sign of institutional maturity.

At the Bitcoin 2025 conference in Las Vegas, even members of the Trump administration stressed their intent to actively support the U.S. crypto sector. That political stance contrasts with the earlier described trade policy and points to divisions within the Republican ranks.

This suggests macroeconomic outlooks remain favorable for the crypto market. If the dust settles from renewed import tariff policy, current positive developments combined with ongoing monetary loosening could push Bitcoin and altcoins higher again on a midterm horizon.

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