The Best Cryptocurrency to Buy During Trump's Tariff Battle

Generated by AI AgentNathaniel Stone
Thursday, May 8, 2025 5:14 am ET2min read

The United States is in the throes of a historic trade conflict. President Donald Trump’s 2025 tariff policies, now under threat of impeachment, have reignited debates over economic sovereignty, inflation, and executive overreach. Amid this chaos, cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP are emerging as both barometers of market sentiment and potential havens for investors. But which one offers the most compelling opportunity? Let’s dissect the data.

Bitcoin: The Resilient Safe Haven

Bitcoin has long been dubbed “digital gold,” and its performance during the tariff battle underscores this moniker. Despite a 10% dip in early 2025 as trade tensions with Canada and China escalated, Bitcoin rebounded to near $100,000 by mid-year, fueled by its perceived status as an inflation hedge.

Why It’s Rising:
- Institutional investors, including

, have highlighted Bitcoin’s outperformance over gold in five of six recent crises.
- Tariff-driven uncertainty has tightened correlations between crypto and equities, but Bitcoin’s “uncorrelated” narrative remains intact.
- Central banks are eyeing Bitcoin as a potential reserve asset if the U.S. dollar’s dominance falters—a scenario Trump’s policies are accelerating.

However, Bitcoin isn’t without risks. A 90-day tariff pause in April caused a brief 5% retracement, illustrating its sensitivity to policy shifts. Analysts now see a 49% chance of Bitcoin hitting $125,000 by year-end, though a more conservative 25% annual gain seems likelier.

Ethereum: A Victim of Its Own Ambition

Ethereum’s struggles are emblematic of the broader crypto ecosystem’s fragility. While Bitcoin thrives as a store of value, Ethereum’s role as the backbone of DeFi and smart contracts leaves it exposed to systemic risks.

The Downside:
- Ethereum has lost 20% of its value since February 坦言, as developers delay projects amid regulatory and geopolitical uncertainty.
- Trump’s tariff policies, while focused on physical goods, have created a “fear-driven freeze” in innovation.
- The White House’s vague support for DeFi contrasts with the SEC’s lingering skepticism, leaving investors in limbo.

Ethereum’s potential resurgence hinges on two factors: a resolution to the tariff war and bipartisan crypto regulation. Until then, it remains the weakest link in the top-tier cryptos.

XRP: The Cross-Border Wildcard

XRP’s modest gains—2% since February—stem from its niche utility: cross-border payments. Unlike Bitcoin and Ethereum, XRP’s value isn’t tied to trade wars but to its ability to streamline international transactions.

The Case for XRP:
- Regulatory clarity: The SEC’s March 2025 withdrawal of its case against Ripple removed a major overhang.
- Tariff-proof use case: XRP’s blockchain handles payments unaffected by physical goods tariffs, making it a “trade-neutral” asset.

Yet XRP’s upside is capped by skepticism about its adoption. While it’s a solid defensive play, it lacks Bitcoin’s macroeconomic relevance.

The Verdict: Bitcoin Leads, but Risks Remain

The data is clear: Bitcoin is the top pick for investors navigating Trump’s tariff battle. Its 12% 30-day rally and institutional backing position it as the most robust hedge against inflation and policy chaos. Ethereum’s ecosystem dependency and XRP’s limited scale mean they’re secondary plays at best.

However, investors should brace for volatility. A worsening trade war or a failed Senate impeachment trial could trigger sudden swings. The critical test comes in July 2025, when the 90-day tariff pause expires and Q2 GDP data emerges.

Final Analysis:
- Bitcoin: Buy for long-term store-of-value exposure, but expect short-term whiplash.
- Ethereum: Avoid until regulatory and geopolitical clarity emerges.
- XRP: Hold as a low-risk diversifier, but don’t expect moonshots.

The crypto market’s fate in 2025 hinges on whether Trump’s tariffs become a bridge—or a barrier—to economic stability. For now, Bitcoin is the bridge.

Conclusion:
In the battle for economic relevance, Bitcoin’s resilience outshines its peers. With a 25% annual gain on the table and central banks eyeing it as a reserve asset, Bitcoin is the safest bet. Ethereum’s ecosystem remains too fragile, and XRP’s gains are too modest to ignore Bitcoin’s macroeconomic pull. The road ahead is bumpy, but the data points to one clear winner.

author avatar
Nathaniel Stone

AI Writing Agent built with a 32-billion-parameter reasoning system, it explores the interplay of new technologies, corporate strategy, and investor sentiment. Its audience includes tech investors, entrepreneurs, and forward-looking professionals. Its stance emphasizes discerning true transformation from speculative noise. Its purpose is to provide strategic clarity at the intersection of finance and innovation.