Trump's recent tariff escalations are prompting a shift in investor sentiment towards alternative assets, specifically Bitcoin and tokenized real-world assets. Although Trump announced a 90-day pause on higher tariffs, he escalated tariffs on Chinese goods, indicating significant implications for global markets. This escalation highlights unsustainable debt levels in both the US and China, potentially leading to increased reliance on inflationary measures. Analysts suggest that these developments may spur greater adoption of tokenized assets that are less exposed to currency depreciation. Bitcoin's struggle for upward momentum may drive investors to seek liquidity in tokenized real-world assets, as these products gain traction. Despite concerns over tariffs, some analysts believe this strategy is more about negotiation than a permanent policy shift. The tone of ongoing negotiations could influence the broader recovery of global risk assets, including the cryptocurrency market by mid-2025.

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