Bitcoin hitting $87,000 – forget about it going to $92,000 – seems like fantasy land. It’s the closest thing I can imagine to seeing a phoenix rise from the ashes. Those ashes were in turn stoked by the protectionist policies of the Trump administration. Are we seeing a genuine bull run? Or is this more than a temporary rebound based on panic and, quite frankly, a little bit of revenge?

Irony? Trump's Policies, Bitcoin's Gain

Think about it. Trump’s “Liberation Day” tariffs days, designed to “take back our jobs, I mean, make America great again,” reverberated around the world. Asset prices plummeted and the world held its collective breath. Look closer. Although those tariffs largely delayed Bitcoin’s rise by removing some competitive pressures, they mixedly – and unawares – made conditions for Bitcoin’s present run. Add in investor fear of trade wars and confusion over classic markets. In doing so, they turned to other stores of value. Gold is soaring to new all-time highs, passing above $3,400. But Bitcoin? Bitcoin offers something gold doesn't: potential for exponential growth.

That’s a tough pill for many stakeholders to swallow. The policies of a leader who arguably distrusted anything outside of the traditional financial system may have indirectly fueled the rise of decentralized finance. When the tariff announcements came out on July 5, the market sentiment had already bottomed, the market started its rebound. Irony, thy name is Bitcoin.

African Fintech: Turning Tariffs Around

Now, let's zoom in on Africa. Those tariffs weren’t just theoretical burdens on a spreadsheet. They had tangible impacts on African economies. Although Trump’s intent was to help American core industries, such as steel and aluminum, his trade policies restricted trade flows and devalued currencies throughout the continent. Most African nations were stranded in the crossfire, with higher import costs and lower export incomes. This economic squeeze has unintentionally accelerated the adoption of Bitcoin and other cryptocurrencies as a means of circumventing traditional financial systems and facilitating cross-border transactions.

African fintech companies have turned to Bitcoin in order to bypass precisely these obstacles. Think about it:

  • Cross-border payments: Bitcoin bypasses the traditional banking system, making international transactions faster and cheaper. No more exorbitant fees or lengthy processing times.
  • Financial inclusion: Cryptocurrencies offer access to financial services for millions of unbanked Africans, empowering them to participate in the global economy.
  • Inflation hedge: In countries with unstable currencies, Bitcoin provides a hedge against inflation, preserving wealth and purchasing power.

I’m not claiming it’s the end-all be-all solution but the promise is clear. The intent of the “Liberation Day” tariffs was to liberate economies. In doing so, they might have unknowingly sparked a different kind of liberation—financial independence powered by decentralized tech. I am calling it: turning a past economic challenge into a future opportunity.

Is the $87K Rally Real?

Also, the on-chain indicators are looking a lot better, such as NUPL and MVRV-Z, and institutional confidence is starting to come back gradually. BTC ETFs are landing small net inflows, doing a complete 180 from the run of negative outflows. But let's not get carried away. The Federal Reserve's next move is crucial. A dovish cut might be enough to maintain those inflows, but if they go hawkish, Bitcoin could crash.

And that brings us back to the question: is this rally real? Honestly, I'm not sure. There are so many variables in play, even now. Shrinking global liquidity, rising inflation expectations and an ever-shifting seas of trade policy add to a challenging macroeconomic backdrop. At the same time, the U.S. Dollar Index (DXY) has dropped to its lowest level since February 2022. This historic decline is pushing investors to search for other assets.

What I don’t know is why Bitcoin has shown such remarkable resilience. It has survived hills and mountains of storms, from regulatory mandates, citing the shrinking of the developing world to market coup. At one point, Trump’s tariffs looked like a leading candidate for the economic death knell. They’re not entirely blameless for inadvertently stoking its latest surge.

So, should you jump on the bandwagon? That's a question only you can answer. But be warned: volatility is the name of the game. Set your strategy to match your risk appetite, and prepare for the potential twists and turns ahead. The Fed's messaging is crucial, and we need clear guidance on trade policy to provide stability.

It’s not just Bitcoin’s price that’s a big deal. It’s the story of how decentralized finance can upend the old order and forge new pathways, despite working against the odds and against all prevailing wisdom. And that, as they say, is a story to keep your eye on. With an eye toward long-term opportunity, it’s always a good time to prepare for near-term turbulence.