Trump, Tariffs, and Bitcoin: Why the Latest Dip is Just Another Buying Opportunity

An insightful look at Donald Trump’s impact on Bitcoin, the recent market dip, and why seasoned investors see downturns as opportunities.

TARIFFELECTION

Jesse Gallant

2/28/2025

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A Political and Financial Tug-of-War

Bitcoin has weathered its fair share of storms, from regulatory crackdowns to billionaire Twitter rants. But when the 45th (and now possibly 47th) U.S. President enters the chat, things tend to get a little more interesting. Donald Trump has never been shy about his disdain for Bitcoin, calling it a scam, a threat to the U.S. dollar, and—perhaps his biggest insult—"based on thin air." Yet, paradoxically, his actions and policies continue to influence its trajectory, whether he intends to or not.

In the past week, Bitcoin and Ethereum have taken a hit, with BTC sliding over 7% and ETH dropping in tandem. While the crypto market is no stranger to volatility, a perfect storm of political posturing, economic uncertainty, and an unfortunate high-profile hack seems to have triggered this latest downturn. Let’s unpack what happened, why Trump’s shadow looms over this dip, and why, in the grand scheme of things, nothing has changed for Bitcoin’s long-term thesis.

Trump, Tariffs, and the Market Jitters

Markets—both traditional and digital—react to uncertainty, and Trump has a knack for creating it. His recent push for steep tariffs on global trade partners has sent ripples through financial markets, reigniting fears of a renewed trade war. Investors, already skittish about inflation and Federal Reserve policy, saw this as yet another reason to de-risk. Stocks stumbled, bond yields shifted, and yes, Bitcoin got caught in the crossfire.

Trump’s policies have historically had a mixed impact on crypto. While his administration leaned toward heavier regulation, it also brought crypto further into the mainstream discussion. Ironically, Trump’s fear of Bitcoin as a competing currency to the U.S. dollar is precisely what makes it appealing to many investors—Bitcoin thrives when trust in government-backed money wavers. When economic uncertainty rises, Bitcoin's value proposition as an independent, decentralized asset becomes even clearer.

The Bybit Hack: A Blow to Market Confidence

As if macroeconomic fears weren’t enough, the crypto world suffered a major confidence blow with a record-breaking hack. Dubai-based Bybit, one of the largest crypto exchanges, fell victim to a $1.5 billion exploit, marking one of the largest thefts in crypto history. Ethereum, being the primary currency involved in the breach, felt the immediate pressure, dragging the rest of the market down with it.

While crypto veterans understand that hacks target exchanges, not blockchains themselves, these events still trigger temporary sell-offs. Market participants fear potential forced liquidations, further losses, or regulatory crackdowns following such incidents. Combine this with Trump-driven macro uncertainty, and it’s no surprise Bitcoin and Ethereum saw sharp declines.

The Bitcoin Thesis Remains Untouched

Despite the short-term chaos, nothing about Bitcoin’s fundamentals has changed. In fact, for the long-term believer, these moments present an opportunity rather than a crisis. As Michael Saylor famously put it, “Bitcoin is on sale.”

The beauty of Bitcoin is that its supply is finite. It doesn’t bend to inflationary pressures, central bank policies, or political rhetoric. Every dip is a moment where your purchasing power increases—meaning those who dollar-cost average are getting more sats for their fiat. History has shown that while Bitcoin stumbles in the short term, it has an uncanny ability to shake off doubt and return stronger.

And let’s be honest—if a single Trump tweet or a trade tariff could permanently derail Bitcoin, it wouldn’t be worth holding in the first place. Instead, the network keeps ticking, blocks keep mining, and the next halving event looms on the horizon. If history is any indicator, those who panic sell now will likely be the same ones buying back in at new all-time highs.

The Takeaway: Ignore the Noise, Stack Sats

Bitcoin’s resilience is legendary, and if you’ve been around long enough, you know these moments come and go. The Trump effect? Temporary. Exchange hacks? Unfortunate, but not existential. Volatility? Inevitable. But Bitcoin’s long-term trajectory? Still intact.

So while mainstream media and day traders sweat over the latest dip, those who understand Bitcoin’s value proposition are quietly stacking. As Saylor, Musk, and countless other seasoned crypto advocates remind us, dips are gifts for those playing the long game. Keep calm, keep stacking, and as the crypto community likes to say: Strong hands, diamond hands.