Trump’s Tariffs Tank Crypto: Is This the End or Just a Plot Twist?

So, Bitcoin, Solana, and Ethereum decided to take a nosedive after Trump’s Liberation Day tariffs announcement. Because, of course, why wouldn’t they? 🙃 But hold onto your hats, folks—analysts are whispering about a potential crypto rally. Because nothing says “stability” like a market that swings harder than a pendulum on Red Bull.

On April 4, President Donald Trump dropped the bombshell: a 10% tariff on all imported goods. Cue the global markets freaking out like they just saw a spider in the bathtub. Stocks plummeted to their lowest levels since 2022, and investors started sweating harder than a marathon runner in a sauna.

Investors are now side-eyeing Trump’s trade policies, worried they’ll spark a rise in consumer prices and kickstart a recession. Because who doesn’t love a good economic meltdown? 🎉

Over on Polymarket, the odds of a 2025 recession are looking pretty solid, with 53% of bettors saying, “Yep, we’re screwed.” And that was before the tariffs even hit the fan.

Cryptos, often touted as safe havens, didn’t exactly live up to the hype. The overall market cap fell by 2.6% after Trump’s announcement. Some cryptos briefly spiked, but then reality hit like a ton of bricks, and the mood turned sour faster than milk left in the sun.

Bitcoin (BTC) took a 4% hit, barely clinging to $80,000 before recovering slightly to $83,210. Because nothing says “volatility” like a 0.03% recovery. 🎢

Ethereum (ETH) fared even worse, dropping 5.2% and now trading at $1,801. Solana (SOL) also took a 3% hit, currently valued at $116.24. Because why should one crypto suffer alone when they can all go down together? 🤷‍♀️

But hey, analysts are still optimistic, saying tariffs could spark a crypto rally. Because nothing says “logical” like betting on chaos to save the day.

How Tariffs Could Be the Crypto Market’s Best Frenemy

Sure, things look grim now, but experts think the initial shock will wear off, and cryptos could rally in the face of economic uncertainty. Because when life gives you tariffs, make lemonade? 🍋

If the tariffs push the economy into a recession, the Federal Reserve might lower interest rates or inject liquidity into the system. And more liquidity could mean more investors diving into risky assets like Bitcoin. Because who doesn’t love a good gamble?

For now, investors are flocking to gold, which hit a record high of $3,148.88 per ounce before retreating to $3,110. Because when in doubt, go shiny. ✨

With traditional markets in turmoil, investors might turn to alternative assets like crypto to hedge against inflation and economic uncertainty. Because nothing says “safe bet” like a market that’s more unpredictable than British weather.

BitMEX co-founder Arthur Hayes is all about tariffs, saying they’ll weaken fiat currencies and boost Bitcoin. Because of course, the guy who loves tariffs also loves chart porn. 📈

Some of y’all are running scurred, but I LOVE TARIFFS, some chart porn to understand why.

Global imbalances will be corrected, and the pain papered over with printed money, which is good for $BTC.

— Arthur Hayes (@CryptoHayes) April 4, 2025

Hayes believes the weakening dollar will be good for Bitcoin and gold in the medium term. Because when the dollar’s down, cryptos are up. It’s like a seesaw, but with more existential dread.

Meanwhile, Bitfinex analysts are warning that the tariffs could lead to a deeper correction in the crypto market. Because when one analyst says “rally,” another says “run for the hills.” 🏃‍♂️

“We could see a continuation of the downtrend that’s played out since February,” said Bitfinex analysts. Because nothing says “reassuring” like a prediction of more doom and gloom.

2025-04-04 11:03

How Tariffs Could Be the Crypto Market’s Best Frenemy

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