Do tariffs hurt Bitcoin? This seems to be the question of the moment. Many seem to be using this more as an excuse to collect profits than anything else.
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The theory behind tariffs causing Bitcoin to fall has two bases, one general and one more specific. The general one says that they create instability in the market and that produces massive sales in the market.
The specific one is more complicated. Tariffs, at least in the short term, should bring inflation in the United States and if that happens the Federal Reserve will make its monetary policy more restrictive by raising interest rates. And it seems that Bitcoin is sensitive to increases lately.
Personally, I do not agree that tariffs will bring these effects. In fact, I even doubt that there will be real tariffs in the end. Everything seems more like a way of putting pressure on it. But the most important thing is that I think that the relationship between rate increases and Bitcoin drops is only something temporary that will soon be left behind.
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