Bitcoin experienced significant fluctuations on Thursday, climbing to approximately $67,000 after briefly falling close to $65,900. This volatility came as investors digested a recent statement from U.S. President Donald Trump, who asserted that the country’s trade deficit has decreased by 78% due to tariffs and might even turn positive before the year ends.
In a post on Truth Social late Wednesday, Trump declared: “The United States trade deficit has been reduced by 78% because of the tariffs being charged to other companies and countries.” He added that “It will enter positive territory during this year for the first time in many decades.”
The significance of this claim extends beyond its numerical accuracy in any single announcement; it serves as a reminder of an ongoing market pressure point.
Tariffs function similarly to import taxes, which can increase prices within the real economy and complicate interest rate trajectories. When markets begin anticipating “higher rates for longer,” it typically strengthens the dollar while diminishing appetite for riskier assets.
Over the past two weeks, Bitcoin has behaved like a macroeconomic indicator once again—responding primarily to changes in liquidity conditions and interest rate expectations rather than crypto-specific news or events.
The broader economic context also keeps trade issues relevant. In early January, data showed that America’s trade deficit narrowed sharply to around $29.4 billion—the lowest level since 2009—driven by reduced imports, increased exports, and tariff-related effects.
However, economists caution that much of this shift was influenced by non-monetary gold flows which can distort monthly figures and make them appear more favorable than underlying trends suggest.
If tariff policies lead to a stronger dollar alongside tighter financial conditions, sustaining rallies could become challenging. Conversely, if these developments are dismissed as mere political rhetoric, risk assets like cryptocurrencies will likely refocus on liquidity flows, leverage levels, and whether buyers can regain previously lost price points.