The ongoing trade tensions and tariff uncertainty have significant implications for the cryptocurrency market. While cryptocurrencies play a minor role in global trade, their equity, debt, and crypto markets are more interconnected than many people assume.
One key factor that could impact investor sentiment is the Crypto Fear & Greed Index, which recently dipped below 20 due to concerns about tariffs. However, investors seem to be calming down, with no appetite for buying speculative meme coins or risky altcoins. As a result, “Altcoin Season” may not occur this year.
Historically, Ethereum has been the driving force behind Altcoin Season, but its recent price drop of 53% could limit its impact. Instead, investors are likely to focus on Bitcoin (CRYPTO: BTC), often referred to as digital gold. Bitcoin’s performance during the tariff upheaval has been better than other top cryptocurrencies.
The macroeconomic outlook is also playing a significant role in cryptocurrency valuations. Investors are taking a closer look at fiscal policy, monetary policy, and macroeconomic data that may offer clues about inflation and economic trends. The U.S. Federal Reserve’s potential interest rate cuts are seen as bullish for crypto.
Moreover, sovereign governments around the world may start to view cryptocurrencies as strategic assets to achieve certain economic goals. This could lead to increased adoption and use of stablecoins, which are pegged 1-to-1 with the U.S. dollar and backed by cash and cash equivalents.
Considering these factors, Bitcoin is seen as a safe asset and long-term store of value, making it an attractive option for investors. However, it’s essential to note that investing $1,000 in Bitcoin may not yield the same returns as some other stocks, and diversification is key.
Source: https://eu.usatoday.com/story/money/investing/2025/04/25/tariffs-could-upend-the-crypto-market-2025/83135583007