The Bitcoin Layer Bitcoin Reacts to Tariff Tensions: What’s Next for Price & Liquidity
Oct 10, 2025
Tariffs on China triggered market volatility and a Bitcoin dip after a strong October start. The discussion highlights U.S. re-industrialization and the shift in rare earth investments for national security. Nik analyzes how geopolitical tensions interact with Fed policy and the implications for oil prices and yields. Falling oil prices could reduce inflation, while the flat yield curve suggests stability in Treasury supply. Lastly, Bitcoin's current price action and support levels indicate possible trends after the tariff shock.
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U.S. Reindustrialization Targets Strategic Supply Chains
- The U.S. is pursuing re-industrialization and direct investment in strategic industries like rare earths to reduce reliance on China.
- Nik Bhatia argues this shift reflects state-capitalist moves aimed at military and supply-chain resilience.
Fed Likely To Accommodate Fiscal Rebuilding
- The Fed's independence is weakening as fiscal and industrial policy push for more accommodative rates.
- Nik says markets anticipate the Fed will ease to support government rebuilding and investment efforts.
Falling Oil Weakens Inflationary Signals
- Oil is in a multi-year bear market and is not signaling inflationary pressure.
- Nik highlights low oil prices as a reason bond yields and inflation fears remain subdued.
