For example, Bitcoin just soared more than 7% when Trump declared a 90-day halt on new tariffs. Everyone’s celebrating, right? Wrong. Don't be fooled. That’s just what he wants you to believe. This isn’t an economic masterstroke; it’s a deliberate, well-crafted hustle aimed to profit… well, likely only himself. Treat this “pause” as a glowing red stoplight. It’s not an excuse for you to pump your portfolio.
Ephemeral Relief, Enduring Instability
Think of it like this: You're driving down a bumpy road. But then Trump comes along and claims to fill one pothole with sand. Temporary relief, right? Sure, for about five minutes. Once the sand gets washed away, you’re right back to rattling your teeth. That's this tariff pause. But that’s a really shallow band-aid to a gaping wound of a trade policy. Those problems have not been fixed—the wounds are still there—it’s merely covered them up with a 90-day reprieve.
The market's initial excitement is understandable. The S&P 500 just had its largest bear market rally since 2008, and crypto stocks such as MicroStrategy, Robinhood, and Coinbase recently went through the roof. Don’t forget that Bitcoin has been tracking equities market really tightly. This new surge is powered largely by relief from trade war anxieties rather than by any underlying strength in Bitcoin itself. Anxieties my friends, are never far behind.
Trump's Trade Policy Highly Unpredictable
Trump's trade strategy is notoriously transactional. To him, tariffs are bargaining chips, not weapons against long-term economic security. This is a huge problem, because markets are allergic to uncertainty more than anything else. You simply can’t craft a rigorous capital program or a thoughtful investment strategy on the whims of one person. It would be the equivalent of trying to build a house atop quicksand. Today, only a 90-day pause would be possible. Come tomorrow, he could jack up tariffs on China up to 125%, something he’s already signaled he might do. And how can you plan or make thoughtful, informed decisions when the rules of the game seem to change on a daily basis?
This isn’t left versus right – it’s left and right against crazy. Counting on a single individual’s whim is a disaster waiting to happen.
False Dawn For Vulnerable Communities
The story is always the same though, that these policies will “benefit” the American worker. Who actually suffers when tariffs skyrocket and then drop without notice? It's often the most vulnerable populations. These higher expenses are ultimately passed on to consumers, placing a heavier burden on low-income families. A temporary pause doesn't undo the damage already done, and it certainly doesn't guarantee protection from future economic shocks. This pause is only a ruse. It obscures the greater danger of economic quietude that’s approaching, one that will eventually hurt those most ill-equipped to weather its storm.
Inflationary Pressures Still Loom Large
As written, Grayscale Investments is correct to note that investors with a long-term perspective ought to position themselves for long-lasting dollar weakness and persistent above-target inflation. It doesn’t matter that these bad actions are temporarily paused though—Trump’s policies still make this possible. Tariffs are a tax—an inefficient one at that—shoehorned onto American consumers and American businesses, ultimately raising costs. This cuts into the purchasing power of your hard-earned money, and in turn, reduces the overall value of your Bitcoin savings. Bitcoin’s claim to fame as an inflation hedge suddenly looks a lot less convincing. This shift takes place in a context where unpredictable trade policies are actively driving up inflation.
Bitcoin, for its part, has remained range-bound between $80-$90k for the vast majority of the year. A short-term boost from a temporary tariff pause can’t overcome the fundamental headwinds facing the cryptocurrency.
A Call For Regulation And Stability
Ultimately, the wild swings in Bitcoin's price, driven by political announcements, highlight the need for a more regulated and stable financial system. We can no longer afford to rely on the capricious whims of one person to decide how our investments will fare. We need policies that support economic growth over the long haul—not market-rigging in the short term. If anything, the system should be protected from the short-sighted whims of political figures—not held hostage to them. While the pause can provide a short-term lift in the price, that reprieve is temporary. Prepare for the worst.
