Trump’s Trade Remarks Stir Inflation Fears, Affecting Crypto Markets

President Trump heightened trade tensions with intensified rhetoric on July 15, 2025, sparking fears of inflation and influencing Federal Reserve expectations.

This shift affects economic forecasts and redirects investor focus towards assets like Bitcoin as potential inflation hedges.

Trump’s Rhetoric Spurs Inflation, Affects Fed Policy

President Trump’s recent trade rhetoric amplified global economic uncertainty, prompting JPMorgan Global Research to adjust its macroeconomic forecasts for 2025. The division now anticipates lower U.S. GDP growth and higher inflation figures, reflecting challenges in market conditions.

The downward revision of U.S. GDP growth to 1.3% and the increased core PCE inflation to 3.1% underscore the potential economic instability influenced by trade dynamics. These changes may compel the Federal Reserve to reconsider its monetary policy strategy.

Mislav Matejka, Global Head of Research, JPMorgan, remarked, “We think the key risk for our base case and especially the riskier segments of the market is one where the disinflation progress fully stalls and starts to reverse, forcing the Federal Reserve (Fed) to open doors to potential hikes later in 2025 or early 2026.”

Bitcoin’s Resilience Amid Political and Economic Shifts

Did you know? Past trade disruptions during U.S. presidencies often led to increased Bitcoin adoption, paralleling today’s scenario with Trump’s intensified rhetoric affecting inflation.

Bitcoin, trading at $116,912.76 with a market cap of $2.33 trillion, shows stable appeal in volatile markets. Despite a 4.28% drop in the last 24 hours, BTC remains resilient over longer periods, reflecting investors’ interest in its hedging capacity (CoinMarketCap).

The Coincu research team notes that as inflation concerns rise, regulatory updates in digital asset marketplaces could intensify. Historical trends reveal that political developments frequently shift crypto adoption patterns, benefiting Bitcoin and affecting overall market dynamics.