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Relax Bitcoin Bulls! Trump Tariffs Are Actually Bullish for BTC Prices
Despite concerns surrounding the US-China trade war, the crypto market is about to benefit from a surprising catalyst: Trump’s tariffs. As a result, investors are advised to relax and let the upside momentum take over.
The notion that a tariff-heavy environment would negatively impact Bitcoin (BTC) prices might seem counterintuitive at first. However, historical data suggests that such conditions have historically led to significant price increases. In 2019, the US-China trade war saw Bitcoin rally from $3,300 to over $13,800 as the Federal Reserve pivoted to rate cuts.
Fast-forward to today, and the situation presents an even more compelling case for Bitcoin bulls. Recent events have led to a significant decrease in liquidity conditions, causing a 70% chance of a local bottom before June, according to crypto intelligence platform Nansen.
Furthermore, analysts believe that the conclusion of tariff negotiations could reduce uncertainty, providing a macro catalyst for risk assets like BTC. Historical parallels support this view, as seen during the aforementioned 2019 US-China trade war.
Goldman Sachs now expects three rate cuts in 2025 due to higher unemployment and weaker GDP growth. As a result, real yields are falling once again, which has historically correlated with significant Bitcoin price increases. The cryptocurrency has historically surged during negative real rate environments, particularly in 2012-2013 and 2020-2021.
The possibility of a breakout is further supported by the chart’s technical analysis. A clear ascending triangle pattern indicates persistent buyer interest, reinforcing the likelihood of a potential break above $104,800. In the event of such an outcome, investors should be prepared for Bitcoin to potentially surpass record highs.
In conclusion, rather than panicking about the trade war, it is crucial to focus on these bullish factors: reduced uncertainty, falling real yields, and a rising triangle structure. With macro liquidity cues aligning with historical patterns, it’s time for Bitcoin investors to relax and let their positions work in their favor.
Please note that the article will not be written exactly as above but rather based on the provided data.
Source: https://coinchapter.com/relax-bitcoin-bulls-trump-tariffs-are-actually-bullish-for-btc-prices/?utm_source=rss&utm_medium=rss&utm_campaign=relax-bitcoin-bulls-trump-tariffs-are-actually-bullish-for-btc-prices
