Crypto traders are on edge as they anticipate President Trump's upcoming tariff announcement, which could significantly impact the market.
Anticipating Market Impact
Global markets are preparing for potential instability, leaving crypto investors uncertain about the potential effects of the new tariffs. Presto Research Analyst Min Jung explains that the market is in a state of limbo, as the specifics of the tariffs have yet to be revealed. The announcement, set for April 2 and referred to as 'Liberation Day,' could drastically alter U.S. trade relations, although its exact impact on the crypto market is uncertain.
Bitcoin’s Turbulent Q1
Bitcoin has had a rocky start to the year. After reaching over $108,000 in January, BTC’s value plummeted to below $80,000 last month. This decline aligns with the wider market's reaction to Trump's tariff announcements and the ensuing global economic uncertainty. Investors initially expected Trump’s pro-crypto stance to fuel a bull market in early 2025. However, the introduction of tariffs has caused unexpected volatility, altering the market's path and quelling the expected bullish momentum. Bitcoin’s performance in Q1 2025 was the worst since 2018, with a decrease of 11.82%.
Bitcoin's Prospects
Despite the recent downturn, experts maintain a positive outlook for Bitcoin’s long-term performance. While policy changes take time to fully come into effect, the anticipated momentum from institutional adoption is seen as a key driver. Bitcoin’s price is predicted to reach the $100,000 mark in the coming months, with a potential recovery in Q2. If the Federal Reserve reduces rates and the administration provides clarity on its tariff stance, Bitcoin could experience another rally, potentially breaking through resistance at $88K. Nevertheless, risks persist and the market’s reaction will depend on the specifics of the tariff announcement.
Crypto traders eagerly await further news on tariffs from the Trump administration to better understand the economic landscape.
