Why Tariffs Are Good for Bitcoin and Cryptocurrencies

You may have seen the big news about tariffs recently. On April 9, 2025, the United States will significantly increase tariffs on goods imported from China to 104%. Japan now faces a 24% tariff, while goods from Canada and Mexico are subject to taxes of around 25%. (In the wee hours of Beijing time, the U.S. has authorized a 90-day tariff suspension for countries that don’t retaliate.)

While tariffs sound like complicated economics, they’re actually important — and could be good news for cryptocurrency investors.

Let’s break it down in a simple and straightforward way so you have a clear understanding of what’s going on and why this could have a positive impact on your cryptocurrency investments.

1. More tariffs lead to more money printing

When tariffs go up, the price of imported goods also increases. This makes it more expensive for consumers and businesses to live. To ease that pressure, governments often print more money (known as quantitative easing).

Why is this good for Bitcoin?

Printing more money increases the amount of cash in the economy, leading to inflation — that is, the value of money decreases over time.

As inflation rises, investors look for stable places to store their wealth. Gold has historically served this role well, and Bitcoin, due to its limited supply, is beginning to show a similar pattern.

Increased money printing may also temporarily boost investor confidence, as it shows that governments are proactively addressing economic issues. This confidence may encourage investors to consider alternative investments like Bitcoin.

For example, when the United States began printing money on a large scale in 2020, the price of Bitcoin surged significantly, from about $7,000 at the beginning of 2020 to an all-time high of nearly $69,000 in November 2021.

In short: more money printing leads to higher inflation, prompting investors to look for assets like Bitcoin to prevent loss of value. In addition, the optimism brought about by increased government action may also drive investor interest in Bitcoin.

2. Bitcoin's Relationship with Stocks and Gold

Historically, Bitcoin's price has often moved in a similar direction to technology stocks. Investors often associate Bitcoin with the technology industry due to its innovativeness and high volatility.

Why might this relationship change now?

Recently, traditional safe-haven assets like gold have surged in value due to increased economic uncertainty. Investors have increasingly turned to gold, causing its price to rise sharply.

As more people view Bitcoin as a reliable store of value during times of inflation, Bitcoin could begin to follow the path of gold. This potential shift could cause Bitcoin's price movement to diverge from that of technology stocks.

3. Bitcoin's Decentralized Advantage

Tariffs are a form of economic control and protectionism that highlight the power of governments over the financial system. However, Bitcoin’s independence from government and central bank control makes it highly resistant to political influence and economic policy.

Why is Bitcoin’s decentralization important now?

With tariffs highlighting government control and economic intervention, more investors may see Bitcoin’s decentralization as a hedge against political risk.

Bitcoin’s decentralized network means that no single entity or government can directly manipulate its supply or overall operation, which may boost investor confidence during times of geopolitical tension.

4. How Bitcoin Protects Against Inflation

Inflation occurs when the overall price of goods and services rises, and causes the purchasing power of money to decrease. This is usually because there is too much money in circulation.

Why does Bitcoin work as an inflation hedge?

The total supply of Bitcoin is capped at 21 million. No one can create more Bitcoins beyond this cap, unlike traditional currencies.

This limited supply makes Bitcoin an attractive store of value, similar to gold, during times of rising inflation.

Final Thoughts

Tariffs are not just economic decisions — they shape the global financial landscape. For Bitcoin investors, these new tariffs may also present potential opportunities.

Finally, stay informed, stay clear-headed, and view this as a strategic moment to build your cryptocurrency portfolio.