On April 5, 2025, the president of the United States, Donald Trump, imposed at least a 10%rate in other countries, and some slapped themselves in higher rates, including the European Union of 20%, Japan with 24%and China at 34%. This increased the fears of global recession that caused investors to sell risk assets, which led to a crisis in multiple financial markets, including cryptocurrencies and shares.
However, less than a week after the imposition, Trump announced a temporary arrest of the rate. This led to a bullish race in the cryptography market.
Similar to cryptocurrencies, another investment asset has been affected by tariffs and other economic movements by the United States government. And apparently, it has a relationship with the encryption market, more specifically Bitcoin. These are US treasures. UU.
Definition of terms:
- Equity: Equity is the value that can be attributed to the owners of a company, whether public or private. It represents the interest of the owner in the asset and is calculated both in personal and commercial finances to measure the health of an investment and security, according to Investopepedia.
- Actions are a type of capital.
- Captivity: A bonus is a security in which the investor gives money to the borrower, who must return the lender with a fixed interest after a fixed date.
- Treasury bonds: Bonds issued by the Government.
- Treasury Performance of the United States: The effective annual interest rate that the United States government pays one of its debt obligations.
- It is the annual yield that investors can expect to have a government security of the United States, including treasure bonds.
- Quantitative lack (QE): Qe is a form of monetary policy in which a central bank buys values in the open market to reduce interest rates and increase the money supply, as defined by investigation.
- In essence, it provides the most liquidity to the central banks, encouraging loans and investment.
- It is expected that the implementation of which will increase the national money supply and stimulate economic activity.
Financial values: How can they be affected even by a single economic movement?
In an analysis of April 4, 2025, one day before the new imposition of tariffs, the Barchart financial market aggregator reported that the 10 -year Treasury yield. UU. It fell below 4% for the first time since October 2024.
According to Barchart, the fall in the performance of the United States treasure was due to investors’ fears on the growing economic uncertainty, including rates, recession and a possible rate reduced by the central bank of the United States, the Federal Reserve.
And because the US treasure yields include interest rates in bonds issued by the Government, the yields of the treasure bonds also experienced a fall at that time.
However, on April 7, 2025, the first Monday after the tariff imposition, the yields of the treasure bonds increased while the actions decreased. Historically, these two values are inversely related in terms of performance.
According to the online publication, Ainvest, because Trump’s rate caused the stock markets to grow, the demand for investors for treasure bonds, including bonds, fluctuated.
Then Bitcoin comes here: its relationship with financial values
Prior imposition to the rate, where the United States Treasury performance was fighting, the encryption market was having a positive demonstration, including $ BTC.
In addition, historical data shows that when the United States Treasury performance struggles, investors tend to look for other investment assets that could offer greater returns, including $ BTC, increasing the liquidity and appetite of risk.
“The irony is that when the yields fall, there are less reasons to sit on the ‘safe’ bonds, and ultimately, more reasons to pursue returns in risk assets such as BTC and ALTS. That is why risk bulls are seen when the yields of 10 years begin to fall.”
And Gambardello, cryptographic analyst
On the other hand, the period after the rate caused the US treasure yields to increase, while the cryptography market and the actions decreased. Investors sought less risky investment assets with fixed interest, unlike $ BTC, which is volatile.
“If inflation continues to exceed expectations, central banks could maintain a stricter monetary policy for longer periods, which has historically been unfavorable for risk assets. This potential change requires a reevaluation of Bitcoin’s role in diversified portfolios, particularly because it can increasingly work independently of the actions.”
Mike Cahill, Executive Director, Douuro Labs
However, in terms of long -term value warehouse, $ BTC is considered the best asset. Analysts believe that Trump’s aggressive tariff policy could produce inflationary pressure: costs related to the Tariff would increase, consumer prices would follow and the global economy could be affected.
This, in turn, could make investors choose $ BTC over other investment instruments.
Finally, if the Federal Reserve decides to use QE to improve the country’s economic situation, $ BTC and the cryptography market could recover and experience a bullish concentration, according to Arthur Hayes, the founder of Bitmex, a negotiation platform between peers specialized in leverage contracts that are negotiated in $ BTC.
“We need to relax, 2 -year 2 -year treasure performance abandoned after the tariff announcement because the market tells us that the Fed will cut soon and possibly restart that to counteract the economic impact.”
Arthur Hayes, Founder, Bitmex
The same feeling was expressed by the cryptographic analyst Milescher, who declared that $ BTC could reach its new maximum of all time if the Federal Reserve opts for QE.
- Read more: Cryptographic analyst: $ BTC will probably recover with ATH records between the third quarter of 2025 and the first quarter of 2026
To conclude
This is how financial values and $ BTC behave according to different economic situations.
| Aggressive rate | Neutral rate | High feed rate | Feed rate cutting | Imposition of QE | |
| $ BTC and cryptography market | Below | Above | Below | Above | Above |
| Treasury yields of the United States | Above | Below | Above | Below | Below |
| Equity | Below | Above | Below | Above | Above |
This article is published in Bitpins: how Trump rates are shaking cryptographic, bonds and paper from Bitcoin as a safe refuge
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