Bitcoin weakens as Trump's tariff threats trigger risk aversion, analysis finds

Investor sentiment toward risk assets, including Bitcoin, has cooled sharply amid renewed tariff pressure from U.S. President Donald Trump, according to an analysis by XWIN Research Japan, a contributor to CryptoQuant. The research firm explained that Trump's tariff policy is exerting downward pressure on Bitcoin's price from 2025 onward, as tariffs directly impact corporate earnings, inflation, and monetary policy expectations, thereby weakening overall risk appetite. This environment makes risk assets like Bitcoin more vulnerable to corrections. The analysis also noted that periods of Bitcoin price declines from last year to the present have coincided with times of heightened economic uncertainty stemming from tariffs and trade conflicts. XWIN Research Japan further stated that economic risks tend to be priced into Bitcoin quickly. As uncertainty over economic growth and interest rates increases, investors move to reduce their short-term exposure. In this process, Bitcoin is treated more as a liquid asset for risk aversion than a long-term store of value, leading to temporary sell-offs. The firm concluded that the economic risks amplified by the shock of Trump's tariff policy are currently having a negative impact on Bitcoin's price, but cautioned that the market's assessment could change if there is a structural increase in exchange inflows or a general deterioration in supply and demand conditions.