In the ever-evolving world of cryptocurrency, major global events like trade wars, tariffs, and political decisions can have unexpected effects on digital assets. With Donald Trump back in the spotlight, discussions about his impact on Bitcoin, Ethereum, and even Dogecoin have gained momentum.

This article breaks down how recent economic moves, including tariffs and fiscal policies, are shaping the crypto market and why digital assets may play a crucial role in the future of global finance.

Recently, Trump introduced a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods. While these tariffs were temporarily paused, their economic impact is significant. Tariffs create financial instability, causing market uncertainty—a situation in which Bitcoin often thrives.

Historically, Bitcoin has been a hedge against economic turbulence. It is decentralized, meaning it operates independently of government policies and economic downturns. When traditional markets struggle due to inflation, fiscal deficits, or unstable government policies, Bitcoin is often seen as a safer alternative.

A fiscal deficit occurs when a government spends more than it earns. The United States, like many other countries, is facing increasing deficits. This situation lowers trust in traditional currencies and government-backed assets, making decentralized alternatives like Bitcoin more attractive.

Bitcoin is a hedge against currency debasement. When a country prints more money to cover its debts, the value of its currency declines. In contrast, Bitcoin has a fixed supply of 21 million coins, making it resistant to inflation.

With ongoing debates about the US fiscal deficit and potential downgrades of the country's creditworthiness, investors are turning to Bitcoin to preserve wealth.

A massive $175 million worth of ETH was deposited into Coinbase Prime. This raised questions: Was the investor using his influence to pump ETH’s price while secretly selling? Or was he simply moving funds for custody? The lack of transparency led to speculation within the crypto community. 

Beyond individual trades, Ethereum continues to gain traction due to its role in decentralized finance (DeFi) and smart contracts. As global economies face uncertainty, ETH's use case as a foundation for digital applications remains strong.

A key component of the global financial discussion is stablecoins, cryptocurrencies pegged to traditional assets like the US dollar. The US government has mixed feelings about stablecoins. On one hand, they increase global access to the dollar. On the other, they could challenge traditional financial control. 

Tether (USDT), the most widely used stablecoin, has found product-market fit, but policymakers are still debating its long-term implications. If the US government embraces stablecoins in a way that benefits its economy, it could become even more integrated into global finance.  

The bigger picture? A shift in monetary policy could involve stablecoins playing a role in government debt management and foreign trade. The key question is whether governments will regulate stablecoins to ensure they align with their economic goals.  

Bitcoin has often been compared to traditional risk assets like stocks. Some investors believe that when traditional markets struggle, Bitcoin should rise, making it an uncorrelated asset. However, in extreme market crashes, Bitcoin tends to fall alongside stocks due to liquidity constraints.  

Yet, over a long period, Bitcoin has demonstrated independence. Unlike stocks, it doesn’t generate revenue, pay dividends, or represent ownership in a company. Instead, it functions as a commodity-like store of value, like gold.  

This makes Bitcoin different from other risk assets. While stocks are valued based on earnings and economic conditions, Bitcoin is valued by market demand. As adoption grows, Bitcoin’s long-term correlation with traditional assets is expected to weaken.  

While Bitcoin and Ethereum dominate, smaller cryptocurrencies, or "altcoins," also play a role in the market. However, this cycle may look different from previous ones.  

Historically, investors turned to altcoins for higher-risk, high-reward bets. But now, with the introduction of Bitcoin ETFs and leveraged financial instruments, investors have new ways to gain exposure to crypto without relying on smaller, riskier coins.  

However, some altcoins, particularly Dogecoin (DOGE), maintain strong cultural significance. Unlike other digital assets, Dogecoin is a meme-driven currency with a dedicated community. Its appeal lies in its fun, decentralized nature, qualities that align with the core principles of crypto.  

Recently, Bitwise filed for a Dogecoin ETF, sparking discussions about DOGE’s legitimacy as a financial asset. Unlike many altcoins backed by venture capital, DOGE has no central authority. This makes it one of the purest decentralized cryptocurrencies.

Critics argue that Dogecoin isn’t a “serious” asset, but its popularity cannot be ignored. Elon Musk’s support and widespread cultural adoption suggest that DOGE is here to stay. 

If a Dogecoin ETF gets approved, it would mark a significant moment for the crypto industry, not just financially, but culturally. It would signal mainstream acceptance of meme-based assets, further blending finance with internet culture. 

The intersection of politics, tariffs, and fiscal policy is creating a complex environment for global finance. However, one thing remains clear: Cryptocurrency is becoming an integral part of economic discussions.

Bitcoin continues to serve as a hedge against financial instability. Ethereum remains a core platform for decentralized applications. Dogecoin, with its cultural appeal, is proving its staying power.

As stablecoins and government policies evolve, the crypto market will adapt. Whether through Bitcoin ETFs, Ethereum’s role in DeFi, or the rise of meme coins, digital assets are reshaping how we think about money.

With Trump’s policies, trade wars, and market shifts, the next few years will be crucial in determining how deeply integrated crypto becomes in global finance. One thing is certain: crypto is no longer just an alternative asset; it’s becoming a central player in the financial system.