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Trump Tariffs Spark Bitcoin Revaluation Debate Amid $10 Trillion Equity Rout

2 mins
Updated by Lockridge Okoth
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In Brief

  • Bitcoin is emerging as a potential beneficiary amid global trade tensions, especially as US tariffs spark capital flight and market volatility.
  • Analysts predict a major revaluation of Bitcoin as liquidity rebuilds and global conditions suggest a shift away from dollar-dependent assets.
  • Bitcoin’s growing role as a hedge against geopolitical risks may solidify its transition from a speculative asset to a functional monetary tool.
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Trump’s trade agenda continues to shock global financial markets, prompting a revaluation of Bitcoin (BTC) and equities.

Bitcoin and the crypto market witnessed notable volatility over the last several weeks. This came as traders and investors reeled from the impacts of tariffs under US President Donald Trump.

Bitcoin and Equities May Be On The Cusp Of A Major Revaluation

The recent surge in Trump tariffs has inadvertently positioned Bitcoin as a potential beneficiary. Venture capital firm MV Global highlights the spike in US tariffs in 2025, citing levels last seen in the 1930s. This has triggered more than $10 trillion in equity losses worldwide.

“The resulting capital flight is reshaping investment flows across asset classes,” MV Global noted.

Average tariff rates on US imports
Average tariff rates on US imports. Source: MV Global on X

With liquidity quietly rebuilding, analysts anticipate a major market revaluation, with Bitcoin at the heart of it.

This forecast comes after MV Global’s Global Economy Index recently turned upward. This often precedes broader asset reflation. Notably, the metric tracks both cross-border capital flows and monetary conditions.

“Liquidity is quietly rebuilding across major economies. As the Global Economy Index turns upward, historical patterns suggest Bitcoin and equities may be on the cusp of a major revaluation,” the firm noted.

Indeed, Bitcoin’s performance is already outpacing traditional markets, which adds credence to its average April return of more than 34.4%. Macroeconomic instability and capital flight are the forces behind this seasonal pattern.

Bitcoin’s April seasonality
Bitcoin’s April seasonality. Source: Glassnode

Based on this, analysts argue that the current market outlook mirrors historical periods when investors moved away from dollar-centric systems in search of decentralized alternatives.

Tomas Greif, chief of product strategy at Braiins Mining Ecosystem, agrees. He notes that Bitcoin’s volatility aligns more closely with major equity indexes.

“If you previously thought Bitcoin was too volatile, you may want to re-evaluate your passive investment strategies for retirement,” Greif remarked.

Bitcoin volatility vs. equity indices
Bitcoin volatility vs. equity indices. Source: Greif on X

According to Mathew Sigel, head of digital assets research at VanEck, this emerging macro backdrop may accelerate Bitcoin’s transition from a speculative asset to a functional monetary hedge.

“Bitcoin is evolving from a speculative asset into a functional monetary tool—particularly in economies looking to bypass the dollar and reduce exposure to US-led financial systems,” Sigel wrote.

Sigel’s point reflects a broader trend: Bitcoin is increasingly viewed as a strategic asset as geopolitical and trade tensions mount. This aligns with a recent US Crypto News publication, which indicated how Bitcoin is progressively presenting itself as a hedge against traditional finance (TradFi) and US treasury risks.

Bitcoin’s potential to gain traction as an alternative reserve or settlement asset could grow. This optimism comes as more economies distance themselves from traditional US monetary influence. BeInCrypto reported that Russia is considering Ruble-pegged stablecoin to challenge US Dollar dominance.

As equity markets reel and liquidity rotates, Bitcoin’s resilience could redefine how investors hedge against geopolitical uncertainty.

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Lockridge Okoth
Lockridge Okoth is a Journalist at BeInCrypto, focusing on prominent industry companies such as Coinbase, Binance, and Tether. He covers a wide range of topics, including regulatory developments in decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), real-world assets (RWA), GameFi, and cryptocurrencies. Previously, Lockridge conducted market analysis and technical assessments of digital assets, including Bitcoin and altcoins such as Arbitrum, Polkadot, and...
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