Even as President Donald Trump’s announcement of tariffs on “Liberation Day” has shaken the crypto market, investment guru Alexander Blume thinks it could ultimately prove to be a pro-crypto move.
Blume is the founder and CEO of Two Prime, an SEC-registered investment advisor. He told TheStreet Roundtable that the U.S. government may use the increased income generated from the newly announced tariffs to acquire additional Bitcoin.
Note that Trump signed an executive order on March 6 to establish the strategic Bitcoin reserve consisting of BTC seized by federal agencies in criminal or civil proceedings. The order also mentioned exploring budget-neutral ways to acquire additional BTC to add to the reserve.
Estimates suggest that the latest tariffs could generate up to $400 billion in additional income for the federal government annually, Blume claimed. This new income could be a potential avenue of achieving the government’s goal of purchasing additional Bitcoin in a budget-neutral way, he added.
The president is well aware of the federal debt of more than $36 trillion, and Bitcoin’s status as a “lifeboat” in such circumstances — many in the Trump administration think so — could indeed become a “self-fulfilling prophecy” if the U.S. leads the world in purchasing the asset, Blume said.
The investment guru added that the U.S. government’s potential purchase of Bitcoin could easily lead to an appreciation in its value by 15-20%.
“I suspect more money will move toward stores of wealth like gold and bitcoin until we see greater economic stability,” Blume said.
As per Kraken’s price feeds, Bitcoin has fallen 5% over the last 24 hours to $82,078.38 at press time. The asset’s value is around 25% lower than its all-time high (ATH) of $108,786 that it hit on Jan. 20, 2025.
