More than a million Bitcoin have vanished because owners didn’t plan ahead. Without a crypto inheritance plan, your family could lose access to your assets forever. Here’s how to safeguard them.
Keep reading
As digital assets become a core part of personal wealth, one uncomfortable question lingers: what will happen to your crypto when you’re gone? Unlike traditional assets that can be managed through banks or brokers, cryptocurrencies are bound entirely to whoever holds their private keys. Lose the keys, and the funds are gone. Permanently.
Each year, millions of dollars in Bitcoin, Ether, and other tokens vanish into the digital void when holders pass away without sharing access. It is estimated that around 1.5 million BTC (roughly 7.5% of total supply) may already be lost forever. With digital wealth now part of countless estates, preparing for the inevitable is no longer optional; it’s the responsible thing to do.
Why Planning for Crypto Inheritance Matters
In traditional finance, wealth transfer is handled through wills, trusts, and custodians. But crypto flips that model: you are the bank. Your heirs can’t simply request a password reset or call customer service. Without private keys, wallets, or access instructions, those assets are unrecoverable for all effects and purposes.
A crypto inheritance plan ensures that your digital assets, from Bitcoin and altcoins to NFTs and DeFi holdings, remain both secure and accessible to the people you choose. It bridges two crucial needs: protecting your funds today and ensuring your legacy tomorrow.
Beyond personal security, inheritance planning also reduces emotional and financial stress for your loved ones. By documenting how and where assets can be accessed, you prevent confusion and potential legal disputes.
Building the Foundation of a Crypto Inheritance Plan
Start with Legal Clarity
Consult an attorney familiar with digital assets. A properly structured will or trust should identify your crypto holdings, list beneficiaries, and outline how they can access those funds. Many jurisdictions still lack explicit laws for digital assets, so expert guidance helps ensure compliance and enforceability.
Secure Your Keys… But Don’t Overshare
The biggest challenge in crypto inheritance is private key management. If you die with your keys, your crypto dies with you. However, leaving keys in plain text within a will or document is just as risky. Instead, consider approaches like:
- Multisignature wallets, which require multiple approvals to move funds.
- Shamir’s Secret Sharing, which means splitting your seed phrase into parts distributed among trusted people.
- Encrypted backups or sealed letters stored in secure, offline locations.
Document recovery procedures in plain language so your heirs can follow them even without technical knowledge.
Choose the Right Executor
A traditional executor may not understand how to navigate crypto. You can appoint a tech-literate executor or designate a digital asset custodian to handle that portion of your estate. This ensures smooth execution and reduces the risk of errors or loss.
In a market driven by innovation and constant change, a well-structured inheritance plan offers something rare in crypto, certainty.
New Tools for a Digital Age
The rise of blockchain-based “death protocols” and smart contract automation adds a new layer of possibilities. Some platforms allow transfers to trigger automatically after certain conditions are met (for example, a verifiable death certificate or extended inactivity).
Ethereum and similar chains already support programmable inheritance systems, but these should complement, not replace, legal documents. Technology can help enforce your intentions, but law remains the foundation of inheritance.
Some investors even use “dead man’s switches”, automated systems that transfer funds if the owner doesn’t log in for a set period. While clever, it might be best to pair them with legal documents to prevent accidental activations.
Protecting Privacy While Planning Ahead
While planning for the future, it’s crucial to maintain security in the present. Avoid including wallet addresses, private keys, or passwords in public wills, which become part of the legal record. Instead, store such details in encrypted files or sealed envelopes accessible only to specific individuals.
Tools like decentralized identifiers (DIDs) and verifiable credentials can also help manage long-term identity and access rights. These systems allow you to define who can access what, and when, without intermediaries.
Custodial vs. Non-Custodial: Finding the Balance
When structuring inheritance, knowing whether your assets are held in custodial or non-custodial wallets makes all the difference.
Custodial services (like major exchanges) manage private keys on your behalf, which simplifies recovery if your heirs can provide proper documentation. However, it introduces third-party risk. Accounts can be frozen, hacked, or shut down.
Non-custodial wallets, on the other hand, offer maximum control and privacy but demand greater responsibility. If your heirs lose the seed phrase, there’s no backup plan. There’s also the possibility of taking a hybrid approach: keeping long-term holdings in non-custodial storage for security, while using reputable custodians for smaller, more accessible amounts.
Keep It Up to Date
A crypto inheritance plan is not a “set it and forget it” document. Prices change, portfolios evolve, and wallet technologies become obsolete very often. It may be wise to revisit your plan regularly, especially after major life events such as marriage, divorce, or the birth of a child.
It’s also worth keeping track of regulatory updates in your jurisdiction. Laws surrounding digital assets and inheritance are rapidly evolving, and what’s compliant today may not be tomorrow.
Common Inheritance Pitfalls
Even the best intentions can go wrong. Here are the most frequent mistakes to avoid:
- Including seed phrases directly in your will. As we mentioned before, this makes them public and vulnerable.
- Neglecting to educate heirs. Without guidance, even secure plans can fail.
- Relying solely on exchanges. Centralized platforms can fail or freeze funds.
Planning isn’t just about distributing wealth; it’s about ensuring continuity. A clear inheritance strategy preserves your crypto’s value and prevents it from becoming part of the estimated $100 billion in lost digital assets worldwide.
Protecting More Than Just Coins
Preparing a crypto inheritance plan isn’t merely about money; it’s about legacy. For all the talk about decentralization and autonomy, responsibility and forward-thinking remain at the heart of crypto ownership. By taking the time to plan ahead, you safeguard not only your wealth but also your family’s peace of mind.
NEWS AND UPDATES
LATEST ARTICLE
If you're looking for a smart way to get more out of your money, here's a little insider tip: locking XTP tokens in the Tap app could be a game-changer. It’s a quick, no-fuss move that unlocks premium features, slashes your fees, and gives you access to exclusive perks (just for being a savvy user). We’re all about helping make your money work harder for you, without jumping through hoops.
Let’s talk about it: the power of premium tiers
Locking your XTP isn’t just about holding onto digital assets, it’s your key to real, everyday savings. Essentially, the more XTP you lock, the more perks you unlock. It really is just a straightforward tiered system that rewards you.
Real-world savings: where you'll see the difference
Lower trading fees
Every transaction costs less when you lock XTP for a premium account, creating significant savings for active traders. The higher your tier, the more you save on each trade, keeping more profits in your wallet where they belong.
Example: A trader making €10,000 in monthly transactions could save hundreds in fees annually by moving from Essential to Plus tier, and thousands by reaching Premier or higher tiers.
Cashback rewards that add up
Getting up to 8% Cashback on your purchases isn’t just a nice-to-have - it’s like getting a discount every time you spend. No extra steps, just more value back in your pocket.
- Coffee runs: Daily €5 coffee becomes €4.60 with the Prestige tier (8% back)
- Weekly groceries: €200 shopping trip returns €16 with Platinum tier (6% back)
- Major purchases: €1,000 electronics purchase gives you €40 back with Premier tier (4% back)
Even at the Plus tier (€300 worth of XTP locked), your 1.5% Cashback quickly adds up, especially for regular spenders.
Fee-free ATM withdrawals
Premium tiers include greater ATM withdrawal limits, saving you those pesky fees that add up quickly:
- Prestige: Unlimited free withdrawals
- Platinum: €1,000 free monthly withdrawals
- Other Premium Tiers: free monthly withdrawals up to €500.
This benefit alone can save hundreds annually for frequent travellers or cash users.
Foreign exchange rate advantages
As a premium member, you get access to exclusive exchange rates when you're travelling or shopping internationally. The higher your tier, the better the rates, meaning you can save big on every global purchase you make.
Maximising your XTP strategy
Step 1: Calculate your spending patterns
Analyse your monthly expenses across categories like everyday purchases, trading activity, and ATM usage to determine which tier offers you the best return on your locked XTP.
Step 2: Consider your lock-up timeline
The beauty of XTP locking is flexibility - you're not permanently parting with your assets but rather unlocking access to a full suite of premium features while still maintaining full control.. Note that the lock-in time frame is one year.
Step 3: Start your journey
Begin with a tier that matches your comfort level and upgrade as you experience the benefits firsthand:
- Download the Tap app and verify your account
- Buy your desired amount of XTP
- Select Upgrade from the bottom menu on the home screen
- Choose your desired plan and follow the instructions.
Additional premium perks
Your locked XTP doesn't just save you money, it elevates your entire financial experience:
- Priority support: Direct access to premium fast track assistance when you need it
- Higher spending limits: Up to €30,000 monthly card spending limits for Prestige members
- Exclusive market insights: Premium crypto market newsletters and insights
- Multi-currency capabilities: Seamless management of various currencies
The bottom line
Whether you're a casual user or power trader, there's a premium tier designed to put more money back in your pocket through reduced fees, enhanced Cashback, and exclusive benefits that add real value to your financial journey.
For those willing to stake their claim in the premium territory, the rewards are clear: reduced fees, elevated features, and an experience built for those who demand more from their money.
We want to inform you that XTP trading will be temporarily paused starting today on the Tap app. We’ll be temporarily pausing XTP trading on the Tap app. This short pause will give us the time we need to complete the integration of ProBit, an exchange that continues to support XTP trading.
We sincerely apologise for any inconvenience caused by the Bitfinex delisting. XTP was removed alongside several other major tokens, and the short notice left limited time to implement an alternative solution. We moved quickly, and the integration with ProBit an exchange that supports XTP is already in progress.
Here’s what you need to know:
- XTP trading will be paused for a few days
- We’re integrating ProBit into our trading engine
- Once that’s done, XTP trading will resume as usual in the app
- We’re also in active talks with several other exchanges to expand access to XTP
We know how important XTP is to many of you, and it’s at the heart of the Tap ecosystem. Thank you for your patience and continued trust. We’ll keep you updated and let you know the moment trading goes live again.
The Tap Team
Dear Tap Community,
We want to share an important update regarding the XTP token and Bitfinex. As part of a broader internal review, Bitfinex has decided to delist several tokens, including XTP along with other notable projects like The Graph (GRT), Notcoin (NOT), and seven others as part of their platform review. This appears to be a broader shift in Bitfinex's listing strategy rather than something specific to XTP.
What’s Next for XTP
The good news? XTP remains at the heart of everything we do! 💙 Our token continues to power all the awesome features you love - our tier structure, rewards, and the entire Tap ecosystem. This change doesn't affect our exciting roadmap or our vision for the future.
Here’s what we’re doing to keep things moving forward:
ProBit Integration in Progress:
Our dev team is already working on integrating ProBit (where XTP currently trades) into our Trading Engine. This will create a seamless trading experience right within our platform!
New Exchange Adventures:
We're in exciting talks with several exchanges to give XTP even more trading homes! While we need to keep the details under wraps for now (those NDAs, am I right?), know that we're pushing hard to create more options for our community.
Community First:
Remember to withdraw your tokens from Bitfinex before July 15, 2025, if you haven't already. We're here to help if you need guidance on this!
The Road Ahead 🛣️
Even in challenging markets, we see incredible opportunities for growth! Here's what's cooking:
- More XTP Utility: We're whipping up new ways for XTP to shine in our ecosystem
- Cool New Features: Q2 is going to bring some exciting platform upgrades
- Let's Talk More: We'll be sharing updates more frequently so you're always in the loop
We're so grateful for this amazing community! 🙏 Together, we've weathered challenges before, and we'll come out stronger this time too. The crypto landscape is always evolving, and we're evolving with it.
We’re deeply invested in the future of XTP - and we’re just getting started. 👏
The Tap Team
Near Protocol tillhör den nya generationen blockkedjeplattformar som sätter användarvänlighet och skalbarhet i fokus. Plattformen lanserades 2020 och erbjuder ett snabbare och mer effektivt alternativ till äldre blockkedjenätverk, utan att kompromissa med säkerheten.
Efter flera års utveckling har Near Protocol etablerat sig som en stark aktör inom kategorin layer-1 blockkedjor.
Sammanfattning:
- Skalbart och utvecklarvänligt: Near Protocol är en decentraliserad layer-1-blockkedja byggd för hög skalbarhet och enkel utveckling av decentraliserade appar (dapps).
- Sharding och låga avgifter: Använder ett unikt shardat Proof-of-Stake-system (Nightshade) för effektiv transaktionshantering och låga kostnader.
- Cross-chain interoperabilitet: Rainbow Bridge möjliggör sömlösa överföringar mellan Near och Ethereum.
- NEAR-token: Det inhemska ekosystemet drivs av NEAR, som används för transaktioner, staking och styrning, med ett totalt utbud på 1,23 miljarder tokens.
Vad är Near Protocol (NEAR)?
Near Protocol är en decentraliserad blockkedjeplattform skapad för att vara både användarvänlig och skalbar. Plattformen stödjer utveckling av decentraliserade applikationer (dapps) med särskilt fokus på att förenkla användarupplevelsen för både utvecklare och slutanvändare.
Near använder en variant av Delegated Proof-of-Stake (DPoS) som kallas Nightshade, där nätverket delas upp i flera parallella segment (shards) som behandlar transaktioner samtidigt. Resultatet är snabba transaktioner, låga avgifter och en betydligt mindre miljöpåverkan jämfört med traditionella Proof-of-Work-nätverk.
En annan viktig funktion är att Near tillåter mänskligt läsbara kontonamn, vilket gör användarinteraktionen enklare då långa, svårtydda plånboksadresser elimineras. Plattformen stödjer dessutom WebAssembly (WASM) och erbjuder utvecklarverktyg som förenklar byggandet av dapps.
Med hjälp av Rainbow Bridge erbjuder Near smidiga tillgångsöverföringar mellan Near och Ethereum, vilket skapar större interoperabilitet inom blockkedjevärlden. Ekosystemet har lockat projekt inom DeFi, NFT:er, spel och sociala applikationer.
Vem grundade Near Protocol?
Near Protocol grundades av Erik Trautman, en entreprenör med bakgrund från Wall Street och grundare av Viking Education. Han samarbetade med två tekniska medgrundare: Illia Polosukhin, tidigare utvecklare på Google, och Alexander Skidanov, tidigare ingenjör på Microsoft och Director of Engineering på memSQL.
Teamet kombinerade expertis inom finans, maskininlärning och distribuerade system för att ta itu med skalbarhetsproblemen som blockchain-nätverk stod inför.
Near utvecklades för att erbjuda en plattform som kan möta behoven för bredare användning utan att tumma på säkerhet och decentralisering. Idag stöds projektet av Near Foundation i Schweiz, som sköter styrning och tillväxt av ekosystemet.
Hur fungerar Near Protocol?
Konsensus och arkitektur
Near Protocol använder en shardad arkitektur kallad Nightshade som delar nätverket i flera delar (shards) där transaktioner hanteras parallellt. Detta möjliggör horisontell skalning och effektiv transaktionshantering.
Med hjälp av mekanismen Doomslug kan Near dessutom uppnå nära omedelbar transaktionsfinalitet, vilket innebär att transaktioner anses vara slutgiltiga direkt efter bekräftelse.
Nätverket bygger på en unik shardad Proof-of-Stake-modell där innehavare av NEAR-tokens kan stakea sina tokens eller delegera dem till validerare som säkrar nätverket.
Smart contracts och utvecklarstöd
Near stödjer smarta kontrakt skrivna i Rust och JavaScript, som kompileras till WebAssembly (WASM). Detta ger utvecklare flexibilitet att bygga komplexa applikationer med bekanta språk.
Användarvänliga funktioner
Near erbjuder mänskligt läsbara kontonamn och funktioner som återställningsbara konton, flerpartsautentisering och möjligheten att sponsra transaktionsavgifter för andra användare – vilket förenklar användarupplevelsen ytterligare.
Cross-chain interoperabilitet
Med Rainbow Bridge kan användare flytta tillgångar mellan Near och Ethereum sömlöst, vilket ökar nyttan och integrationen mellan blockkedjor.
Vad är NEAR?
NEAR är den inhemska tokenen inom Near-ekosystemet och används till flera ändamål:
- Betalning av transaktionsavgifter och lagringskostnader
- Staking för att bidra till nätverkets säkerhet och få belöningar
- Röstning och deltagande i protokollets styrning
Tokenen följer en inflationsmodell med ett tak på totalt 1,23 miljarder tokens, varav cirka 1,18 miljarder redan är i omlopp vid tiden för skrivandet.
Hur kan jag köpa och sälja NEAR?
Du kan enkelt köpa, sälja, handla och förvara NEAR genom Tap-appen. På Tap kan du hantera NEAR tillsammans med dina andra digitala tillgångar och få en sömlös och säker användarupplevelse.
Imagine you have euros in your wallet but need to spend dollars at a store. You'd need to exchange your currency first, right? Wrapped crypto works in a similar way, but for blockchain assets.
Wrapped cryptocurrency is a tokenised version of another crypto asset that lives on a different blockchain. Think of it as your original crypto asset wearing an outer layer that lets it work on another blockchain network. For example, Bitcoin can't naturally function on the Ethereum network because they're separate systems with different rules.
But by "wrapping" Bitcoin, you get a token that represents Bitcoin's value while being compatible with Ethereum's ecosystem.
This seemingly simple innovation has become a cornerstone of decentralised finance (DeFi), allowing assets to move between otherwise isolated blockchain ecosystems and unlocking billions of dollars in cross-chain liquidity.
How wrapped crypto works
The wrapping process involves three key elements: custodians, merchants, and smart contracts.
Here's how it typically works:
- Deposit: You send your original cryptocurrency (like Bitcoin) to a custodian—an entity or smart contract that holds your assets safely.
- Minting: Once the custodian confirms receipt of your deposit, they mint an equivalent amount of wrapped tokens (like WBTC) on the target blockchain.
- Release: These newly created wrapped tokens are then sent to your wallet on the new blockchain, ready to use.
When you want your original tokens back, you simply reverse the process—a procedure called "unwrapping" or "burning":
- Return: You send your wrapped tokens back to the custodian.
- Burn: The wrapped tokens are destroyed (burned).
- Release: The equivalent amount of the original cryptocurrency is returned to your wallet.
This process ensures a 1:1 backing between wrapped tokens and their underlying assets, similar to how stablecoins maintain their value through reserves. For every wrapped Bitcoin (WBTC) in circulation, there's one real Bitcoin held in reserve by a custodian.
Benefits of wrapped crypto
Cross-chain compatibility
The most obvious benefit is interoperability. Wrapped tokens allow assets from one blockchain to participate in activities on completely different networks. Bitcoin holders can participate in Ethereum-based DeFi without selling their Bitcoin, while Ethereum users can access the value and liquidity of Bitcoin without leaving their preferred ecosystem.
Expanded DeFi possibilities
Before wrapped tokens, assets like Bitcoin were essentially locked out of the booming DeFi space. Now, billions of dollars worth of previously idle assets can earn yields, serve as collateral for loans, or provide liquidity to trading pools.
Enhanced functionality
When assets like Bitcoin get wrapped as ERC-20 tokens on Ethereum, they gain new capabilities:
- Smart contract interaction: Bitcoin doesn't natively support complex smart contracts, but wrapped Bitcoin on Ethereum can interact with any Ethereum smart contract.
- Faster settlements: Bitcoin transactions typically take about 10 minutes to confirm, while Ethereum transactions complete in seconds or minutes, making wrapped Bitcoin potentially more practical for everyday transactions.
Liquidity boosts
By making assets usable across multiple blockchains, wrapped tokens significantly increase market liquidity. The same value can now participate in various ecosystems without being split across different platforms.
Common types of wrapped tokens
Wrapped Bitcoin (WBTC)
The most popular wrapped token by market cap, WBTC brings Bitcoin's massive value onto the Ethereum blockchain. Each WBTC is backed by one Bitcoin held in reserve. This has allowed billions of dollars worth of Bitcoin to participate in Ethereum's DeFi ecosystem.
Wrapped Ether (WETH)
Interestingly, even Ethereum's native currency (Ether) has a wrapped version. Why? The original Ethereum token (ETH) predates the ERC-20 standard that most Ethereum tokens follow. WETH makes ETH compatible with dapps that require the standard ERC-20 format.
Other Notable Wrapped Assets
As cross-chain functionality becomes increasingly important, we're seeing more wrapped versions of various assets:
- Wrapped AVAX (WAVAX) on Ethereum
- Wrapped UST (Terra stablecoin) on various chains
- Wrapped tokens of various layer-1 cryptocurrencies
How to use wrapped tokens in DeFi
Lending and borrowing
Platforms like Aave, Compound, and MakerDAO allow users to deposit wrapped assets as collateral to borrow other cryptocurrencies. This means you can leverage your Bitcoin holdings to access stablecoins or other tokens without selling your BTC.
Liquidity provision
Decentralised exchanges like Uniswap and SushiSwap rely on liquidity providers to enable trading. By providing wrapped tokens to these liquidity pools, users can earn trading fees and additional rewards.
For example, the WBTC/ETH pool on Uniswap has consistently been one of the largest liquidity pools, enabling billions in trading volume between Bitcoin and Ethereum.
Yield farming
Many DeFi protocols offer incentives for users who provide liquidity or lend assets. Wrapped tokens allow users to participate in these "yield farming" opportunities across multiple blockchains, potentially maximising returns.
Risks involved
Custodial risks
Most wrapped tokens rely on custodians to hold the original assets, introducing an element of centralisation and trust. If the custodian is compromised or acts maliciously, your wrapped tokens could become worthless.
For instance, WBTC relies on BitGo as its primary custodian. While BitGo maintains high security standards, this represents a potential single point of failure in an otherwise decentralised system.
Smart contract vulnerabilities
Wrapped tokens, like all blockchain assets involving smart contracts, face potential security risks. Bugs or exploits in the smart contracts governing wrapped tokens could lead to fund losses.
Minting and redemption friction
The process of wrapping and unwrapping tokens often involves fees, waiting periods, and minimum amounts. These friction points can make wrapped tokens less practical for smaller transactions or quick trades.
Bridge attacks
Cross-chain bridges, which facilitate the creation of many wrapped tokens, have been frequent targets for hackers. Several high-profile attacks have resulted in millions of dollars in losses.
The future of wrapped tokens
Decentralised wrapping mechanisms
The industry is moving toward more decentralised wrapping processes that reduce reliance on centralised custodians. Projects like tBTC and renBTC are exploring new models where custody is distributed among multiple parties or managed entirely by smart contracts.
Multi-chain integration
As blockchain ecosystems evolve toward greater interoperability, wrapped tokens are likely to play a crucial role in creating seamless experiences across multiple chains. Users may eventually interact with different blockchains without even realising they're using wrapped assets behind the scenes.
Standardisation and regulation
As wrapped tokens become more integrated into mainstream finance, we can expect more standardised practices and potentially increased regulatory attention, particularly around reserve verification and consumer protection.
Bridging the blockchain islands
Wrapped tokens have essentially built bridges between previously isolated blockchain islands, creating a connected DeFi landscape where assets flow freely across networks. They give users remarkable flexibility – allowing them to use Solana's speed while accessing Ethereum's rich application environment.
While these tokens solve major interoperability challenges, it's worth remembering their trade-offs. The centralized custody model goes against blockchain's decentralization principles, and security risks exist.
Though we'll eventually see more sophisticated cross-chain solutions emerge, wrapped tokens currently serve as the vital connectors powering our increasingly interconnected crypto economy.
Sure, crypto markets reacting negatively to macroeconomic policy shifts is nothing new, but these “worse than expected” Liberation Day tariff announcements have been particularly brutal.
Looking at the numbers, the sweeping tariffs introduced by U.S. President Donald Trump have resulted in mass liquidations. Almost a week later, $8.27 trillion has been wiped from global stock markets and $233 billion from crypto markets, bringing the overall crypto market cap down 8.5%.
But how exactly do tariffs influence crypto? The immediate reaction was a sharp downturn, with big names like Bitcoin falling below $82,000, and later $74,700, and Ethereum dropping to lows of $1,400.
In the long term, could these economic policies position crypto as a safe haven? Let’s explore the interplay between trade policy, traditional finance, and crypto prices.
Firstly, what are tariffs, and how do they affect the markets?
In a nutshell, tariffs, or taxes on imported goods, create ripple effects across various financial markets. Historically, they have had an impact on:
- Foreign exchange (FX) markets: The USD typically strengthens when tariffs are imposed, as more global investors seek stability, and in response, a stronger USD often puts downward pressure on Bitcoin and altcoins.
- Equities: Stocks, particularly in sectors reliant on global trade, tend to decline as tariffs increase business costs and disrupt supply chains.
- Inflation & interest rates: Tariffs can contribute to higher consumer prices, influencing Federal Reserve policy and liquidity conditions, which in turn affect investment in risk assets like crypto.
The interconnected nature of these macroeconomic factors proves once again that digital assets are not insulated from traditional market turbulence. Let’s explore the damages.
Trump’s “Liberation Day” tariff announcement
So, what happened? On 3 April, Trump announced a 10% baseline tariff on U.S. imports, with 60 countries, including Cambodia, China, Vietnam, Malaysia, and Bangladesh, facing tariffs of up to 50%. Companies in the EU will see 20% tariffs, all taking effect a week later.
Previously announced 25% tariffs on steel, aluminum, and foreign-made cars remain in place.
How the crypto market responded
Never missing a beat, the crypto market reacted swiftly to the tariff announcements:
- Bitcoin has dropped ~10% since February. On 3 April, the price fell from $87,106 to $82,526 in a matter of hours, falling to lows of $74,700 days later.
- Ethereum followed a similar trajectory, dipping to lows of $1,430.
- Altcoins were hit harder, with SOL dropping nearly 25% to $97.52 - its first dip below $100 since February 2024.
- Crypto-related equities tanked, with Strategy (formerly MicroStrategy) down 15%, and mining firms like MARA Holdings and Riot Platforms losing 11%.
- Correlation with equities strengthened, as the Nasdaq and S&P 500 also experienced sharp declines.
According to technical analysis, the overall market cap formed a bear flag pattern, signaling potential price declines (this pattern appears after a sharp drop, followed by a temporary upward channel). If the price breaks below this channel, a further decline is likely.
Source: Emmaculate, published on TradingView, April 3, 2025
Why Bitcoin might bounce back
A note from the bears. Despite the initial sell-off, Bitcoin could see a rebound for several reasons:
- Bitcoin as "digital gold": During economic uncertainty, BTC has historically been viewed as a hedge against inflation and fiat devaluation.
- Institutional movements: Exchange outflows suggest that institutions are holding rather than panic-selling, reducing BTC liquidity and potentially driving prices higher in the future.
- Monetary policy shifts: If the Federal Reserve pivots toward rate cuts or quantitative easing (QE), Bitcoin could benefit from increased liquidity.
BitMEX co-founder Arthur Hayes has argued that such macro conditions could push BTC toward $150,000 in the next cycle.
Do tariffs + the U.S. Dollar = a crypto opportunity?
The impact of tariffs on the U.S. dollar has direct implications for crypto:
- Reduced exports and lower bond demand could weaken the USD over time.
- A weaker dollar typically boosts Bitcoin, as investors look for alternative stores of value.
- Grayscale suggests that Bitcoin could benefit from a fragmented monetary landscape, particularly as central banks diversify reserves away from USD.
Tariffs, regulation & crypto’s role in the financial system
Trump’s policies could indirectly accelerate crypto adoption by:
- Increasing the use of crypto for trade settlements due to currency uncertainties.
- Encouraging alternative reserve assets beyond the U.S. dollar.
- Aligning with a potentially pro-crypto regulatory stance under a second Trump administration.
What should crypto investors do now?
Crypto investors should watch a few key things closely:
- When and how the new tariffs are rolled out, and if any changes are made along the way
- How other countries respond, especially with their own tariffs
- Changes in crypto regulations, as governments adjust to the new economic climate
- How money moves between traditional markets and crypto, which can impact prices and sentiment
- Consider long-term portfolio strategies, as crypto’s role in a shifting financial landscape could strengthen.
Conclusion: Tariffs may hurt now, but crypto could emerge stronger
While recent tariffs triggered a downturn across both traditional and crypto markets, it’s worth noting that this was driven more by uncertainty than fundamentals. As has previously been the case, crypto’s response is often tied to macro trends, with Liberation Day tariffs being no exception.
The bottom line is that market dynamics are changing. As liquidity patterns shift and capital moves differently, crypto’s role within broader portfolios continues to evolve. While this can have both a positive and negative impact on portfolios, continuing to stay informed is the wisest step one could take.