"Canada's Tariffs Spark Bitcoin's Volatility: Buy Opportunity or Inflation Risk?"

Canada's recent imposition of 25% tariffs on $155 billion worth of U.S. goods has sparked concerns about potential impacts on global markets, including cryptocurrencies. The move comes as part of an ongoing trade dispute between the two countries, with Canada retaliating against U.S. tariffs on steel and aluminum.

Market pundits have expressed caution about the potential consequences of these tariff wars, which could trigger inflation and dent the Federal Reserve's rate cuts outlook. This, in turn, could be bearish for risk assets like Bitcoin. However, some experts, such as Robert Kiyosaki, author of "Rich Dad, Poor Dad," have termed the recent weakening of Bitcoin following Trump's tariffs a discounted "buying opportunity."

Kiyosaki believes that the U.S. fiscal debt situation is a bigger problem that would always make BTC, gold, and silver more attractive. He stated, "Trump tariffs begins: Gold, silver, Bitcoin may crash. Good. Will buy more after prices crash. Real problem is DEBT...which will only get worse. Crashes mean assets are on sale. Time to get richer."

Bitcoin closed January in the green, with gains of 9.29% on the charts. Interestingly, February has usually recorded massive historical gains, especially for the post-halving year. For instance, since 2013, BTC has never closed February in the red, with an average of 15% gains. If the trend repeats itself this time, BTC could edge higher in February.

However, the tariff-induced inflation risk can't be overlooked just yet. Another bullish indicator for the king coin is the U.S. money supply (M2), as USD liquidity is typically associated with BTC rallies. In fact, according to market analyst Joe Burnett, the indicator could surpass 2021 highs and push the crypto even higher. He said, "M2 is set to break all-time highs for the first time since 2021. Infinite liquidity chasing 21,000,000 bitcoin. You know what happens next."

At press time, the price action was nearly halfway from its key liquidity levels. It might be difficult to pinpoint which direction it could take. Perhaps, the U.S. jobs report