- Tariffs do not directly impact Bitcoin and cryptocurrencies.
- Bitcoin’s core holder base is too robust to be swept away by tariff fallouts.
- Cryptocurrencies could see new all-time highs if economic conditions reverse soon.
Anthony Pompliano weighed in on the market turmoil Monday, arguing President Trump’s tariffs don’t directly target crypto but hit prices indirectly by creating investor uncertainty. He also offered a unique perspective on the tariffs’ long-term goals and Bitcoin’s resilience.
During a recent podcast, Pompliano noted that investors withhold their funds whenever the market’s uncertainty level rises. That is why Bitcoin’s price drops under such circumstances, considering how the lack of clarity demoralizes investors who prefer to wait for more definite conditions to re-enter the market.
Focusing on the hot topic of how Donald Trump’s tariff regime could affect the US economy, the renowned analyst considers the ongoing policy adjustments by Trump a good development. He believes the President and his team are building a fort to protect the nation’s economy from potential dangers.
Related: Trump Tariffs Shock Markets: Crypto Loses $100B, Bitcoin Price Unstable
In the meantime, he analyzed the tariff’s potential effect on Bitcoin, noting that the cryptocurrency is partially sensitive. According to Pompliano, a core Bitcoin holder base will not sell its assets despite the existing chaos in the market. This holder base does not care about tariffs or whatever happens in the market, but will hold their assets.
Despite acknowledging that anything could happen in the crypto market, Pompliano does not see Bitcoin dropping as low as $50,000, given the population of hardcore long-term holders in the cryptocurrency’s ecosystem. Meanwhile, flipping the conditions, the analyst thinks other countries desisting from countering America’s tariff adjustment could mean well for the markets.
Related: Finding the Floor: Here Are Key BTC/ETH Support Levels Post-Plunge
Pompliano believes reversed conditions would trigger an explosion in American manufacturing, boosting job creation within the country. That would cause a ripple effect on the economy, leading to a bounce back for crypto and stock prices. The analyst believes Bitcoin and altcoins could reach new all-time highs if the US economic atmosphere becomes more positive.
Bitcoin traded for $76,561 at the time of writing after recovering slightly from a drop to $74,434 in the early hours of Monday, according to TradingView’s data.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
