Analyst Explains the Hidden Link Between Tariffs and Bitcoin Gains

With global trade tensions flaring and economic uncertainty gripping the markets, Bitcoin seems to be quietly charting its course above the chaos.

The world’s largest cryptocurrency by market cap has defied the downtrend in equities, surging to a six-week high of over $89,000 and emerging as an unlikely financial beacon amid the intensifying tariff war between the United States and its main trading partners.

How Tariffs Are Fueling Bitcoin’s Rise

President Donald Trump’s escalating protectionist stance, including his administration’s recent release of a “non-tariff cheating” list and threats toward Federal Reserve Chair Jerome Powell, has rattled investors and amplified fears of an inflationary spiral.

Well-known BTC advocate and crypto investor Kyle Chassé took to X to explain the “tailwinds” behind Bitcoin’s latest uptick. His argument hinges on a chain reaction: tariffs increase import costs, which then drive up consumer prices, eroding purchasing power and weakening confidence in fiat currencies. In this environment, Bitcoin’s fixed supply and decentralized nature make it an attractive alternative.

“Tariffs are inflation in disguise,” Chassé wrote. “As tariffs escalate, global trust in USD weakens. Capital starts seeking neutral ground. Bitcoin, as a borderless and non-sovereign asset, becomes the logical alternative.”

There’s a broader geopolitical undercurrent at play, too. China has warned of retaliation against countries cooperating with U.S. tariff demands, and Japan has expressed resistance to continued concessions in trade talks. Bitcoin’s appeal as a “borderless, non-sovereign asset” is growing in this climate.

“When markets wobble from geopolitical tension, BTC bounces back faster than stocks or gold,” Chassé said.

He also argued that “smart money flows into chaos,” and, in his opinion, BTC is one of the bigger beneficiaries right now.

Bitcoin vs. Traditional Markets

Recent price action appears to support the analyst’s claim. Bitcoin jumped to a six-week high of $89,200 on Tuesday, reflecting an 18% rally from its local bottom of $75,000 earlier in the month.

Over the past 24 hours, the asset gained a modest 2%. That upward move has propelled the cryptocurrency’s market cap above $1.75 trillion, with its dominance now sitting at 61.4% (on CoinGecko), a mark of its growing strength relative to the wider crypto market.

Interestingly, this resurgence has coincided with gold hitting an all-time high near $3,500 per ounce, indicating a broader flight to perceived safe-haven assets.

The strong showings of gold and its digital counterpart have come against the backdrop of steep dips in U.S. equities. Since April 9, the S&P 500 has erased $2.5 trillion in value, and the Nasdaq Composite is down 16% year-to-date, according to Bernstein’s Gautam Chhugani.

In that time, BTC shed only 10%, with Chhugani indicating in a research note that the asset is fast becoming a “Main Street proxy” as it outperforms traditional tech-heavy indices.