The announcement by U.S. President Donald Trump regarding high tariffs on imports from Canada, Mexico, and China has created a significant ripple in financial markets. This news initially made waves in the 24/7 cryptocurrency market over the weekend. Bitcoin 
$64,314 experienced a drastic decline of over 10%, dropping to the $91,500 level. Similarly, Ethereum 
$1,872 fell by 36% from its weekend peak, reaching as low as $2,100. Solana 
$74 also suffered, losing 24% of its value and settling at $176.
USDT
AAPLInstitutional Demand Supports Bitcoin
The sudden market drop has caught the attention of experts, who suggest that Bitcoin may show resilience in the long term. Analysts from research and brokerage firm Bernstein noted that while Bitcoin is correlated with risk assets in the short term, it continues to serve as a store of value against the U.S. dollar in the long run.
In January 2025, there was a reported net inflow of $5.3 billion into U.S. spot Bitcoin ETFs, aligning with an annual expectation of $70 billion. MicroStrategy’s acquisition of $2.5 billion in Bitcoin and additional funding plans indicate that institutional demand remains robust.
Tariffs May Support Bitcoin in the Long Run
Jeff Park, head of Bitwise Alpha Strategies, argues that the U.S. government may use tariffs as a temporary tool to aim for indirect interest rate reductions and a weakening dollar in the long term. According to Park, this strategy could trigger a “sharp increase” in Bitcoin’s price.
He added that rising demand for long-term U.S. bonds could reduce dollar reserves, potentially pushing up prices for risk assets like Bitcoin. However, analyst Alex Krüger cautioned that this policy could negatively impact the U.S. economy, thus exerting pressure on Bitcoin.
Former Treasury Secretary Lawrence Summers critiqued Trump’s policies as “economically irrational,” while hedge fund manager Daniel Loeb expressed belief that this is part of a broader strategy. Despite current volatility in the cryptocurrency market, Bernstein forecasts that Bitcoin could reach $200,000 by the end of 2025, driven by institutional demand.
