Not Bitcoin: This Cryptocurrency Emerges as the Unexpected Winner Amid Trump’s 2025 Tariffs
In 2025, as former President Donald Trump imposed sweeping tariffs targeting major global trading partners, the cryptocurrency market reacted with notable volatility. Contrary to popular expectations, Bitcoin — often considered the cryptocurrency bellwether — was not the biggest beneficiary of this geopolitical and economic upheaval.
The broad tariffs, announced in early April 2025 during what was unofficially called ‘Liberation Day,’ led to rapid shifts in market sentiment. Bitcoin’s price plummeted from recent highs to a low near $80,637 by April 8, reflecting the shock waves sent through the digital asset space by escalating policy battles. In the immediate 24 hours after the tariff announcement, long and short positions worth hundreds of millions of dollars in the crypto markets were liquidated, underscoring the sector’s sensitivity to trade tensions and macroeconomic shifts.
Yet, experts and market observers have noted that Bitcoin’s response to Trump’s tariffs was more complex than a simple price drop. Some institutional investors have begun to view Bitcoin as a diversification tool in portfolios shaken by tariff-induced uncertainty — a “safe haven” of sorts as traditional assets like gold face pressures under the new policy landscape.
However, the real winner in this fluctuating environment has been a group of alternative cryptocurrencies, particularly stablecoins and certain altcoins benefiting from increased regulatory clarity and unique market positioning.
Regulatory Advances Boost Stablecoins
Coinciding with the tariff announcements, the U.S. government marked a major milestone: the passing of the first federal legislation to regulate stablecoins. Enacted as the “Genius Act,” this legislation imposes reserve requirements, regular audits, and consumer protections for stablecoins — making them more appealing to conservative and institutional investors.
This legislative progress has helped create a safer, more transparent framework for digital assets that are pegged to fiat currency values and less volatile by design. As a result, stablecoins have emerged as critical liquidity providers and transaction facilitators amid the tariff-induced market volatility, positioning themselves as the biggest winners rather than Bitcoin in this context.
A Shift in Investor Behavior Amid Tariff Uncertainty
Market strategists have observed that while Bitcoin initially suffered from the tariff shock, investor appetite is gradually rotating towards cryptocurrencies with clearer regulatory status and use cases. The temporary pause on some tariffs, particularly against China, has further eased market anxieties and encouraged risk-on sentiment, indirectly benefiting crypto assets beyond Bitcoin.
One analyst noted that the delay or negotiation of tariff measures, while providing short-term relief, could contribute to longer-term uncertainty until comprehensive trade agreements or crypto regulation clarity emerges. This landscape favors assets like stablecoins and select altcoins that benefit from explicit government regulation and uptake in everyday use cases, including payments and institutional custody.
Future Outlook: Capital Inflows and Market Potential
Adding to the positive momentum for alternative cryptos, an executive order signed by Trump in mid-2025 opened the door for trillions of dollars in 401(k) retirement capital to be allocated into cryptocurrencies. This unprecedented potential capital influx is expected to benefit a broad range of digital assets, enhancing market depth and liquidity.
While Bitcoin is projected to benefit significantly in the medium term — with price targets nearing $200,000 based on current capital flow models — stablecoins and regulated altcoins are the immediate winners of the tariff environment due to their risk profile and regulatory shelter.
Conclusion
The 2025 tariffs initiated by former President Trump have undoubtedly shaken financial markets, including cryptocurrencies. However, the biggest beneficiaries have not been Bitcoin, as many anticipated, but rather regulated stablecoins and certain altcoins that align well with new legislative frameworks and investor demand for stability amid uncertainty.
As the crypto market adapts to evolving trade policies and regulatory landscapes, attention is shifting from Bitcoin’s price swings to the broader, diversified crypto ecosystem that is now driving growth and innovation in turbulent times.