Despite a recent recovery, cryptocurrencies are facing another decline. This is linked to the anticipation of new tariff measures by Donald Trump, raising market concerns.
Brief Recovery and New Waves of Decline
On April 1, Bitcoin and major altcoins began to recover, but soon started to decline again. The initial recovery was due to apparent progress in U.S. President Donald Trump’s trade strategy, which created short-term optimism among investors. The recovery impacted cryptocurrencies like Ethereum, Dogecoin, and Solana. However, with the introduction of new tariffs by Trump, the market went back into decline.
Will History Repeat?
Crypto analyst Ash Crypto draws parallels with the situation in 2019 when, amidst trade conflicts, cryptocurrencies including Bitcoin showed growth. While the situation in 2025 shares similarities, several factors such as high inflation may alter the outcomes. According to the analyst, the Federal Reserve’s ability to maneuver is significantly limited, which could affect market behavior.
Experts Are Divided
Experts are divided on the future of the cryptocurrency market. Arthur Hayes believes that the current situation could promote Bitcoin's growth if the Federal Reserve takes liquidity measures. Conversely, critics like Peter Schiff suggest that the new tariff policy may expose weaknesses in cryptocurrencies. Analysts, including Alex Kruger, warn of potential short-term market disruptions if a hardline tariff policy is implemented.
Cryptocurrency markets remain uncertain as they await developments around tariff policies. Whether these concerns will be justified or not, significant challenges lie ahead for investors.
