Trump’s Tariffs vs. Crypto: Bitcoin’s ‘Crash’ and Why It’s Just Another Day in the Bull Market

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The latest crypto rollercoaster ride has left investors clutching their pearls once again. But Matt Hougan, the CIO of Bitwise, insists it’s all just a blip on the radar-nothing more than a minor tremor in the grand scheme of the ever-bullish crypto market.

The chain of events that triggered this so-called ‘cataclysm’ unfolded last week. Bitcoin plummeted into the abyss, only to scramble back up like a cat caught in a bathtub. And though it didn’t exactly return to its former glory, it did show signs of resilience. Wow, such drama! 😲

Absolutely Nothing to See Here, Folks

What caused this virtual apocalypse, you ask? Well, none other than a threat from former President Donald Trump. In a fit of tariff-ridden fury, he threw around the idea of slapping China with 100% tariffs on all imports. Why? Because Beijing dared to restrict exports of rare earth metals. The nerve! 🚨 With equity markets closed, traders, desperate for a release, flocked to crypto like moths to a flame.

Before you could blink, Bitcoin dropped 15%. Altcoins like Solana? Ouch, they took a 40% nosedive. Nearly $20 billion in leveraged positions were liquidated, and the crypto markets trembled like a deer in headlights. And yet, shocker-most of the assets bounced back, especially after the US government cooled its jets a little.

So here’s the big question: Is this some fleeting chaos, or a hint of a deeper, underlying weakness? Hougan’s answer: a resounding ‘meh.’ Crypto’s fundamental outlook remains unchanged. The market’s technological prowess, security, and regulatory strides are still strong, he claims. All things considered, no biggie. Nothing to worry about. Let’s all just take a deep breath. 😌

Hougan’s team at Bitwise uses three simple questions to measure the aftermath of a market shock: Did any major institutions crumble? How did blockchain systems handle the pressure? And did investor panic reach panic-panic levels? The answer to all three: Nope. No institutions collapsed, blockchain systems ran like well-oiled machines, and the chaos mostly affected retail traders who, let’s face it, probably shouldn’t have been that levered up in the first place.

Technologically, decentralized platforms like Uniswap and Aave were chugging along like it was any other Tuesday. The centralized platforms, though-well, Binance had to issue a few refunds, which is always fun to watch. But in the grand scheme of things, crypto held up just fine. It’s almost like we’re maturing as a market. Could it be? 💁‍♂️

And let’s not forget the professionals. They shrugged it off, likely with a cocktail in hand, signaling their vote of confidence in crypto’s future. Bitcoin’s 21% gain in 2025 and Bitwise’s 22% rise in the Large Cap Crypto Index-oh, the sweet smell of progress! The future’s so bright, they’re practically wearing shades. 😎

Sure, there may still be some short-term turbulence as liquidity providers and market makers take a breather, but Hougan isn’t worried. He believes the market will regain its composure and continue to thrive. Get ready for more upward momentum, folks.

“But over time, I expect the market will catch its breath and renew its attention on crypto’s fundamentals. When that happens, I think the bull market will continue apace.”

Bitcoin: Still Miles from Peak Euphoria

According to CryptoQuant’s on-chain research, Bitcoin’s MVRV ratio is sitting comfortably around 2.0. This is hardly the “sky’s the limit” territory we’re used to seeing at market peaks. It’s more like a typical mid-cycle condition. The ratio is nowhere near the 4.0 level we saw at previous bull highs, but it’s also far above the sub-1.0 levels we saw during accumulation periods. So long-term holders are chilling, not selling, and institutional ETF inflows continue to prop up the market.

Meanwhile, miner activity has cooled off a bit. This could signal less supply pressure in the market. So instead of gearing up for a fiery peak, it looks like Bitcoin is consolidating within a healthy, mid-phase market. Think of it as crypto’s version of a calm, collected deep breath before the next phase of growth. 🧘‍♂️

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2025-10-15 17:21