President Trump’s plan to halt funding for non-compliant sanctuary cities has sparked market reactions amid a broader backdrop of economic uncertainty. The move echoes past policies and raises questions about federal versus state power in immigration enforcement. This policy shift came after President Trump issued an executive order targeting cities that resist cooperating with federal immigration authorities. 10 April 2025, saw the start of this new initiative, which could have a significant impact on these cities’ ability to provide vital services like disaster relief. The market reaction has been mixed, as Bitcoin, despite generally trending down in the past week, rose over 4% following the release of inflation data. This unexpected surge highlights the potential for volatility in financial markets with policy shifts and how they influence cryptocurrencies such as Bitcoin.