The Trump Tariff War 2.0 is Here, and Bitcoin Price Movements Are Under Pressure

The Trump Tariff War 20 is here, and investors are closely following the market reaction. Financial analysts compare current conditions with the first tariff war

The Trump tariff war 2.0 has begun, and investors are closely following the market reactions. Financial analysts are drawing parallels between current conditions and the first tariff war during Trump’s presidency, which spanned from 2017 to 2019.

Investors who navigated the crypto market during that period will recall the significant market movements, especially in Bitcoin. As the market faces uncertainty, investors are keeping a close eye on key indicators.

Among these indicators, the US Dollar Index (DXY) and M2 Money Supply are critical signals for market direction. Recent market trends are closely mirroring those from Trump’s first administration.

A chart published by ZeroHedge showcases how the DXY in 2025 is closely following its patterns from 2016.

Investors are also wondering if Bitcoin price movements could mirror the 2017 rally. In 2025, investors saw gold prices climb 10% year-to-date. In contrast, Bitcoin prices have fallen by nearly 10% during the same period.

This shift indicates investors’ preference for safer assets amid the Trump tariff war 2.0.

On March 4, Bitcoin experienced a rapid decline, dropping nearly $2,000 in just 25 minutes. Prices moved quickly away from the resistance level at $90,000.

Such volatility, even without major news events, highlights the crypto market’s sensitivity to liquidity changes and technical levels. According to The Kobeissi Letter, similar volatility occurred during the first Trump tariff war in 2019.

Investors who navigated volatility during that period identified bargain opportunities. For instance, when the stock market experienced a downturn in early 2019, investors recognized a buying opportunity as the market had already priced in pessimism.

At the time, reports highlighted a potential increase in Trump’s tariffs on $200 billion worth of Chinese goods. This move threatened to escalate the trade war and dampen economic prospects.

As a result, the S&P 500 futures saw a decline of 1.1%, and the Dow Jones Industrial Average futures fell by 1%. However, in a surprising turn, Trump announced a delay in the tariff hikes.

This announcement led to a rebound in both S&P 500 futures, which rose by 0.3%, and Dow futures, which gained 0.2%.

The term “altcoin season” is resurfacing as analysts consider possible market reactions to the Trump tariff war 2.0.

Analyst bitcoindata21 recently noted similarities between Bitcoin’s price patterns in 2025 and the 2017 bull market.

History shows that a strengthening Bitcoin market often precedes a rally in altcoins. Typically, investors rotate capital from Bitcoin into altcoins following price peaks, as witnessed in 2017.

A recent analysis also compared Bitcoin price movements, the US Dollar Index, and the M2 Money Supply. The analysis emphasized past market cycles, noting how a weaker dollar historically benefits crypto markets.

DXY recently broke below an important support level at 101.3, which could signal positive momentum for Bitcoin and altcoins. A weaker dollar usually drives investors toward alternative investments, including cryptocurrencies.

Market analysts are also tracking the expanding M2 Money Supply, another indicator correlated with crypto market performance. Experts anticipate that increases in the M2 supply by late March may improve liquidity conditions, impacting crypto assets.

The combination of a weaker dollar, tariff policies, and liquidity changes keeps investors attentive. For now, volatility remains high, and traders are closely observing short-term market signals amid broader economic uncertainty.