Bitcoin has been showing resilience in the face of global markets highly responsive to tariffs, with the U.S government potentially looking to use revenue from tariffs to buy Bitcoin. The Trump administration has expressed interest in accumulating crypto assets, particularly Bitcoin, and has proposed using revenue from tariffs and revaluing gold certificates to fund the acquisition. This move is part of the administration’s goal to make the United States the crypto capital of the world.
Despite the uncertainty surrounding tariffs and their impact on financial markets, Bitcoin has remained strong. On-chain data indicates that large holders of Bitcoin, known as sharks and whales, are bullish and have been increasing their holdings. The whale flow ratio to exchanges has dropped, signaling positive sentiment among large holders. Additionally, the amount of BTC available on exchanges is decreasing, indicating that traders are holding on to their assets for the long term.
The sustained decline in the sell-side risk ratio suggests that long-term investors are less inclined to sell their Bitcoin, as they expect the price to rise further. The announcement of potentially channeling tariff revenue into Bitcoin is seen as a positive development for BTC and could help drive the price higher. Investor confidence in the administration’s policies will play a significant role in shaping market sentiment towards tariffs and Bitcoin.
If the U.S government starts buying Bitcoin with revenue from tariffs, it could lead to a shift in sentiment within the market, eroding concerns and potentially driving the price of Bitcoin higher. This could see Bitcoin reclaiming previous levels and experiencing significant upside potential. However, if investors remain wary of the policy, Bitcoin may continue to consolidate within a certain price range. Overall, the prospect of tariff revenue being used to acquire Bitcoin is seen as a positive development for the crypto market.
