While the tumult over tariffs caused some market fluctuations this week, a pair of industry executives believe all signs point positive for cryptocurrencies.
Galxe cofounder Charles Wayn said this week’s market volatility doesn’t detract from what has been a historic bull.
“Certain geopolitical tensions and policy decisions sent all markets significantly south on Monday. However, this isn’t the first time we’ve seen such volatility, it won’t be the last, and it has largely come out in the wash already,” Wayn said. “Bitcoin is already back up to nearly $100k, while Ethereum has recovered nearly 10% at the time of writing. Stock markets meanwhile also seem to have shrugged off fears over US trade tariffs, not least because it seems US President Trump has made a deal with Mexico, and all of this may just have been a scare tactic.”
Wayn believes this is just short-term noise. We are in the middle of the strongest crypto bull market the industry has likely seen to date, as Trump has introduced radical pro-crypto policies that will significantly strengthen sentiment over the medium to long term. In the short term, there will be wobbles and movements with main markets, but Wayn said Trump has made it clear that crypto is one of his key focuses and there is no better indicator for the industry than that.
“What is more, we are likely to see and hear a lot more about crypto companies returning to their roots in the US in coming weeks and months – another factor that will continue to buoy crypto markets through 2025 and beyond,” Wayn concluded.
Titan founder Chris Chung said tariffs are good news because they’ll drive folks to crypto. He adds that the magnitude of the sell-off in altcoins presents the perfect opportunity to buy in at lower prices before they inevitably rebound.
“Yet again, we’re seeing the crypto market react impulsively to macro news,” Chung said. “The announcement that the US is imposing tariffs on Mexico, Canada and China has hit altcoins particularly hard, with many suffering double-digit percentage drops. But this panic is, yet again, an overreaction. Digital transactions aren’t tariffed, so this news has little direct impact on cryptocurrency.”
Chung said the tariffs will likely attract more inflows into digital assets in the long term since most of the crypto ecosystem is USD-based. As people’s home currencies, like the Canadian dollar, plummet against the US dollar, we will see more inflows into both USD-denominated stablecoins and crypto assets like Bitcoin and altcoins. And if the tariffs cause inflation, as many fear they will, then even US investors will seek refuge in cryptocurrency.
“Right now, Bitcoin still dominates the crypto ecosystem heavily,” Chung said. “In fact, its dominance briefly hit 64% earlier (this week) – the highest level in years.
“However, this is simply a sign of the higher volatility of altcoins, and it presents an opportunity for those still looking to enter the altcoin market at lower prices before they rebound. We’re still in a bull market, after all, so volatility is more an ally than a foe.”