Bitcoin price might drop in the short term due to ongoing tariff risks. However, ETFs could provide support. According to a crypto expert from Bitfinex, BTC is facing pressure but could still benefit from recent ETF growth.
Bitcoin as a Safe Haven Asset
Bitcoin has always been seen as a safe investment. It’s often used as a hedge against inflation and global risks. People usually buy BTC when they’re worried about inflation or financial instability. But things are changing. BTC is facing new challenges.
U.S. Tariffs Could Impact Bitcoin
Bitcoin has always been a popular hedge against economic issues. But, U.S. tariffs could weaken that status. Jag Kooner, the Head of Derivatives at Bitfinex, said Bitcoin faces more pressure because of trade policies and inflation.
New U.S. tariffs could trigger reactions in markets. These include weaker stock prices and a stronger dollar. But BTC is different. It now has new advantages that could help it weather these storms.
BTC’s Advantages in This Cycle
Kooner explains that Bitcoin now has growing institutional adoption. This helps BTC handle tariff shocks better than other assets. Increased ETF flows also support BTC. These factors make BTC more stable than traditional assets, especially in times of uncertainty.
“Bitcoin may dip at first, but inflation concerns and a weakening dollar could push it back up,” Kooner said. As more institutions adopt Bitcoin, they view it as a hedge against inflation.
Bitcoin’s Potential Growth
If the dollar continues to weaken, Bitcoin could grow. More people are seeing BTC as a safe way to fight inflation and economic uncertainty. As more investors turn to BTC, the asset could continue to rise.
Watch for Key Market Catalysts
Aside from tariffs and inflation, other factors could influence Bitcoin’s market. Kooner points to regulatory changes, particularly the GENIUS Act, as important. Regulatory clarity could boost Bitcoin’s price.
BTC’s growth is mainly due to institutional interest and ETF inflows. ETFs could continue to drive BTC’s rise. Tariff news, inflation data, and regulatory updates will also affect BTC’s price.
Bitcoin’s Price: The Next Move
Bitcoin’s all-time high of $111,000 is a key level to watch. If BTC breaks this level, it could confirm a strong upward trend. However, a macroeconomic shock might cause a dip. BTC could drop to the $105,000–$108,000 support zone.
