Bitcoin Faces Uncertain Future Amid Trump’s Tariff Announcement

WASHINGTON, D.C. — Bitcoin prices are poised for significant volatility as traders prepare for former President Donald Trump’s announcement of new global trade tariffs, dubbed ‘Liberation Day.’ Scheduled for April 2, 2025, at 4 p.m. ET, the announcement comes as Bitcoin trades near $85,000, down from a peak of almost $110,000 during Trump’s inauguration.

Analysts express concerns that Trump’s tariff measures could lead to a sharp decline in Bitcoin’s value. Zach Burks, CEO of Mintology, a non-fungible token (NFT) company, described Trump’s planned announcement as ‘an atomic bomb’ for the current markets. ‘Crypto isn’t safe in the immediate term,’ he stated in an email. Burks explained that Bitcoin is seen as the ‘retail investor doomsday asset of choice,’ in stark contrast to gold, which is favored by institutional investors.

In light of Trump’s commitments to create a U.S. Bitcoin reserve and positions in various crypto ventures, Burks noted the increasing influence that Trump wields over the cryptocurrency market. The mixed performance of Bitcoin and the broader crypto market has left many traders on the sidelines, waiting for clarity on the implications of the tariffs.

Gadi Chait, an investment manager at Xapo Bank, commented on market behavior in the lead-up to the announcement, stating, ‘Bitcoin investors have been bracing for today’s announcement, so a price drop comes as no surprise. Uncertainty breeds caution across markets, and crypto is experiencing a tension between short-term speculation and institutional pullback.’ Chait emphasized that rising fears surrounding inflation due to tariff uncertainties could adversely affect crypto markets.

Currently, Bitcoin prices have fluctuated between $76,600 and $94,500 in recent weeks. Should prices slip below the critical support level of $76,600, it could indicate a major shift in market sentiment.

Burks further warned traders to expect ‘mass drop-offs,’ predicting Ethereum could fall to $1,600 and Bitcoin might dip below $80,000 as retaliatory tariffs take effect. However, he remains optimistic about the longer-term outlook, suggesting that a rewriting of international trade rules could initially challenge crypto but ultimately pave the way for its resurgence. ‘The outcome for crypto will be positive,’ he asserted.

Analysts and investors will closely monitor any further developments from Trump’s press conference and broader economic ramifications as the market navigates through this turbulent period.