YEREVAN (CoinChapter.com) — The Trump Tariff War 2.0 is here, and investors are closely following the market reaction. Financial analysts compare current conditions with the first tariff war during Trump’s presidency. Investors remember the significant market movements from 2017-2019, especially in the crypto space.
Currently, financial markets face uncertainty, prompting investors to closely watch key indicators. Among these indicators, the US Dollar Index (DXY) and M2 Money Supply stand out as critical signals for market direction.
Recent market trends closely mirror those from Trump’s first administration. A chart published by ZeroHedge highlights how the DXY in 2025 closely follows its patterns from 2016. Investors wonder if Bitcoin price movements could mirror the 2017 rally.
Bitcoin Price Under Pressure
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 saw 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.
Altcoin Season Speculation Returns
The term “Altcoin season” reemerges 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 a strengthening Bitcoin market often precedes a rally in altcoins. Investors typically 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.
US Dollar Index (DXY) Weakens
DXY recently broke below an important support level. Historically, such breaks signal positive momentum for Bitcoin and altcoins. A weaker dollar usually drives investors toward alternative investments, including cryptocurrencies.
Market analysts also track 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 closely observe short-term market signals amid broader economic uncertainty.
