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Crypto SWOT: Trump’s tariffs have made the stock market more volatile than Bitcoin - a rare shift

Kitco Media
By Frank E Holmes
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Crypto SWOT: Trump’s tariffs have made the stock market more volatile than Bitcoin - a rare shift teaser image

Strengths

  • Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Onyxcoin, rising 175%.
  • Bitcoin surged as much as 7.7% after President Donald Trump announced a pause on reciprocal tariffs on dozens of non-retaliating countries, Bloomberg reports. Smaller cryptocurrencies like XRP and Solana gained more than 11%, while Ether also turned higher after Trump’s announcement.  
  • The U.S. Senate confirmed Paul Atkins as chair of the U.S. Securities and Exchange Commission in a 52-44 vote. Atkins is expected to scale back regulation, reduce corporate disclosures, and make SEC rules friendlier toward cryptocurrency companies. Atkins will lead a leaner agency, as at least 500 SEC employees have taken deferred resignation and buyout offers to leave the regulator, writes Bloomberg. 

Weaknesses

  • Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was EOS, down 22%.

  • Bitcoin’s price swung sharply, dropping 1.3% to $76,046 after an earlier 1.1% gain, as crypto traders reacted to market turmoil driven by U.S. trade tariffs. Some expect continued volatility, eyeing key support near $65,000, while others highlight Bitcoin’s appeal as a hedge in global uncertainty.

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  • Since President Trump announced his global tariffs last week, the price of Bitcoin has plunged 10%, dropping below $78,000 on Sunday night. In January, Bitcoin reached a record of nearly $110,000 on the day that President Trump was inaugurated, Bloomberg reports. 

Opportunities

  • Billionaire Michael Novogratz’s crypto firm, Galaxy Digital Holdings, has secured approval for a direct listing on the Nasdaq, with trading set to begin soon after a special shareholder meeting.
  • The U.S. Justice Department will limit its cryptocurrency crime investigations to focus on cases related to terrorism, drug cartels, victimizing investors, and other specific categories. The department will no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for unintentional violations of regulations, according to Bloomberg.  
  • Trump’s tariffs have made the stock market more volatile than Bitcoin—a rare shift, Bloomberg reports. Unlike major U.S. equities, Bitcoin remains largely unaffected, supported by moderate leverage and crypto-friendly regulations.

Threats

  • Block Inc. was fined $40 million by the New York Department of Financial services for alleged anti-money-laundering inadequacies and cryptocurrency compliance failure on its Cash App platform, reports Bloomberg. The company failed to conduct adequate due diligence on customers monitor and report suspicious transactions.
  • Artificial intelligence and cryptocurrency mining data centers—powered by massive amounts of electricity—would face fees if they exceed new federal greenhouse gas emission limits, under Democratic legislation introduced Friday in the Senate, according to Bloomberg.
  • European authorities shut down a large pedophile platform, Kidflix, that allowed users to pay with cryptocurrencies. The platform had 1.8 million users worldwide with 72,000 videos on its server and led to the identification of 1,400 suspects and 79 arrests, writes Bloomberg. 
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Frank E Holmes

Frank Holmes is CEO and chief investment officer of U.S. Global Investors, Inc., a boutique investment advisory firm based in San Antonio that manages domestic and offshore funds specializing in the natural resources and emerging markets sectors. The company’s no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

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