The Impact of U.S. Tariffs on the Crypto Market

The crypto world has been completely caught off guard here in 2025 due to an ongoing trade war between the U.S. and China, which has escalated tensions and created a ripple effect across global markets. The trade war, characterized by a series of tariffs and counter-tariffs, has not only affected traditional industries but has also significantly influenced the cryptocurrency landscape. The imposition of these tariffs has led to unexpected setbacks, causing investors and stakeholders within the crypto community to reassess their strategies and outlook.

One of the most critical aspects of this situation is the psychological impact on market sentiment. Typically, during a bull market cycle, optimism prevails, and prices tend to rise steadily as investors are eager to capitalize on potential gains. However, the current environment is starkly different. The uncertainty stemming from the trade war has injected a sense of caution among investors, leading to a more bearish sentiment than one would expect during a period that is traditionally characterized by growth and enthusiasm.

To analyze this further, we spoke with Andreas Brekken, Founder of SideShift.ai to provide deeper context on the current Crypto landscape and what to expect in 2025.

Deep Dive with Founder Andreas Brekken

1. Why are Tariffs having a direct impact on Crypto markets even though they don't affect them directly? What's the correlation?

When the covid stimmy checks were mailed out, people paid down debt, invested in stocks, bought flatscreen TVs. The money left over was spent to speculate on crypto. When tariffs make the future look uncertain, crypto is sold before stocks, gold, boats, and even flatscreen TVs. We are still several cycles away from The Decoupling.

2. Do you anticipate the ongoing trade war to wrap up sooner rather than later? And if so, what are the chances that we still see a bull market appear for Crypto in 2025?

Trump is the first crypto president. His “Art of the Deal” and “Global Trading System Restructuring” may cause temporary collateral damage to crypto, but we’re still in a bull market.

3. The U.S. has laid a lot of groundwork to create a healthier regulatory environment for Bitcoin's adoption (despite the ongoing trade war). How might this be a key component for Bitcoin's success once the dust settles?

The Trump administration has improved the regulatory environment for crypto every week since stepping into office and I expect this to continue. The industry has been saying “crime is now legal”, but in fact “normal behavior is now legal”.

What is Sideshift.ai?

SideShift.ai is a direct-to-wallet cryptocurrency exchange platform that allows users to trade more than 200 digital assets across various blockchains. With significant integrations with Trezor, Bitcoin.com, and Edge Wallet, SideShift.ai has facilitated over $2.0 billion in transaction volume. By offering 24/7 support, direct wallet settlements, and prioritizing user experience, SideShift.ai is transforming the way crypto users exchange assets.