With its value plummeting by over 10%, Strategy epitomizes the tumbling crypto companies in the US after Trump’s newly imposed tariffs. On Monday, Bitcoin dropped by 5.5%, hitting its lowest point in 2025, while Coinbase and Robinhood dropped by 5% and 14%, respectively. 

Susannah Streeter, the head of money and markets at Hargreaves Lansdown, noted that

“High risk-off sentiment is canceling out optimism about a more clement environment for coins”.

Meanwhile, Trevor Koverko, a crypto entrepreneur, stated that “Crypto is not that unique from a market asset class perspective. It is a good old-fashioned risk asset. It has to decouple if it’s going to be useful”. 

Bitcoin Facing Death Cross

Along with major crypto companies, Bitcoin is speculated to face a ‘death cross’ amid the fear of recession. Bitcoin has broken below $75,000, reflecting broader market anxiety over economic instability. According to Sathvik Vishwanath, Co-Founder & CEO of Unocoin 

“Technical indicators suggest that Bitcoin is nearing a ‘death cross,’ where the 50-day moving average crosses below the 200-day moving average, which could signal further bearish momentum” 

While the long-term outlook of Bitcoin depends on investor apprehension and global volatility, the current short-term volatility cannot be overlooked. 

Notably, on December 16, 2024, Bitcoin hit a record high of over $108,000.

How Tariffs Could Drive BTC Higher

Although cryptocurrency is hitting its rock bottom after Trump’s tariffs, BitMEX co-founder Arthur Hayes outlines multiple factors that could make the current economic environment favorable for Bitcoin:

  • Weakening U.S. Dollar Index (DXY): As investors around the globe are selling off U.S. equities and repatriating their funds, the DXY could fall, boosting demand for alternative assets like Bitcoin
  • Fed Rate Cuts & QE: Hayes noted a sharp drop in the two-year Treasury yield after the tariff announcement, signaling expectations of Federal Reserve interest rate cuts and potentially a return to quantitative easing (QE)
  • Weaker Chinese Yuan: With China now facing new tariffs, Hayes predicts that Beijing may let the yuan (CNY) weaken past 8.00, pushing Chinese investors to seek hedges like Bitcoin to preserve wealth

Considering the uncertainty in the US market, currently, investors seem skeptical about investing in cryptocurrency.  However, the situation is expected to become clearer in the coming days. At that point, the market will either experience further drops or absorb the turbulence caused by Trump’s tariffs.