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Author: Admin | 2025-04-28
To tell right now how tariffs would impact the economy, there is a very real possibility that the cost of goods and services could rise in the short term. As a result, consumer purchasing power could weaken, which could end up slowing down economic growth for a period of time.This dynamic would directly impact businesses and the stock market. If companies begin to show signs of decelerating sales or weaker profit margins, the stock market could begin to sell off. During situations featuring widespread economic uncertainty, investors tend to flock toward alternative assets. Given the increasing adoption of crypto, I would not be surprised to see prominent cryptocurrencies such as Bitcoin begin to move upwards as investors add it as an extra layer of diversification to their portfolio.Will Bitcoin be higher or lower one year from now?The chart below shows the price of Bitcoin throughout 2024. Following a short-lived jolt earlier in the year, Bitcoin's price movements were actually quite mundane throughout the spring and summer. It wasn't until around the time of the election that Bitcoin started to materially surge.Bitcoin Price data by YChartsI think that the recent momentum fueling Bitcoin could suggest optimism over how the incoming administration will positively impact and change the crypto landscape.While I can't say for certain in which direction the price of Bitcoin will move, history suggests that it should continue surging under the new Trump administration. With new legislation looking likely and a more pro-crypto administration incoming, I am cautiously optimistic that Bitcoin's price will continue to rise over the next year. Adam Spatacco has positions in Coinbase Global. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, and Goldman Sachs Group. The Motley Fool has a disclosure policy.
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