Tariff Tussle: Will Bitcoin Break Through? 🤔
- Leaning on the fence: Crypto traders await Trump’s tariff announcement, uncertain of market impact.
- Despite Q1 downturn, experts predict Bitcoin could test $100,000 if tariffs and policies stabilize.
Bitcoin [BTC] remains steadfast above $84K as traders adopt a cautious “wait-and-see” posture, awaiting President Trump’s much-anticipated tariff announcement.
With global markets poised for potential turbulence, crypto investors are left grappling with uncertainty. Will the new tariffs ignite fresh volatility, or will they open the door to new opportunities?
Crypto traders in ‘wait-and-see’ mode
Presto Research Analyst Min Jung observed,
“Right now, the market is in a wait-and-see mode, as the details of the tariffs have yet to be disclosed.”
The announcement of new tariffs on April 2, dubbed “Liberation Day,” is expected to bring significant changes to U.S. trade relations. However, the exact impact on the crypto market remains unclear.
Traders are weighing the potential fallout from these tariffs, which may trigger a chain reaction in global trade.
“Some investors believe the impact may be less severe than initially feared, viewing the recent dip as a potential ‘buy the dip’ opportunity…”
Jung noted,
“However, many traders are still opting to remain on the sidelines until there’s greater clarity.”
Worst Q1 for Bitcoin since 2018
The first quarter of 2025 has been a tumultuous one for Bitcoin. After peaking above $108,000 in January, BTC experienced a sharp drop to below $80,000 last month.
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Post-November, the market followed a classic “buy the rumor, sell the news” pattern. Investors had initially expected Trump’s pro-crypto stance to drive a bull market in early 2025.
However, the implementation of tariffs has introduced unexpected volatility, shifting the market’s trajectory and dampening the anticipated bullish momentum.
Bitcoin’s Q1 2025 performance marked the worst since 2018, with a drop of 11.82%.
Looking ahead
Despite the recent downturn, experts remain optimistic about Bitcoin’s long-term outlook.
While policy changes take time to fully unfold, the expected momentum from institutional adoption is seen as a key driver, with pro-crypto policies from the current administration set to play a pivotal role.
However, the effects of these policies are likely to be gradual.
Bitcoin’s price is expected to test the $100,000 mark in the coming months, with a potential recovery in the second quarter of the year.
If the Federal Reserve cuts rates and the administration provides clarity on its tariff stance, Bitcoin could see another rally, possibly breaking through resistance at $88K.
That said, risks remain, and the market’s reaction will hinge on the specifics of the tariff announcement, leaving investors waiting for further clarity on the economic landscape.
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2025-04-02 05:16