Bitcoin Drops 5.5% Amid Trump Tariffs, Experts Predict $200,000 Recovery
2min read In recent weeks, U.S. President Donald Trump’s tariffs have had an impact on Bitcoin’s price, causing it to fluctuate. However, some experts remain optimistic about the cryptocurrency's future, predicting that it will reach new heights despite the current market volatility.
Bitwise, a crypto asset manager, maintains its year-end price target of $200,000 for Bitcoin, according to ryan Rasmussen, the company’s Head of Research. Rasmussen believes that once the market stabilizes from the recent chaos, Bitcoin will begin to recover and move upwards. He compares the current situation to dry powder being stored for when volatility and uncertainty ultimately subside.
Bitcoin's price recently fell by 5.5% as investors reacted to Trump's “reciprocal” tariffs, trading around $82,000. This decline was part of a broader market reaction, with equities dropping on growth concerns and fears of retaliatory trade measures. The tech-focused Nasdaq, in particular, plunged more than 5%.
The performance of Bitcoin has largely correlated with the tech sector over the past few years. This trend has become even more noticeable amid gold’s record-breaking climb. However, Rasmussen points out that Bitcoin has outperformed gold, the S&P 500, and the tech-heavy Nasdaq since November 5. He attributes this to an avalanche of positive news, including the White House’s establishment of a Bitcoin reserve, regulatory shifts, and sovereign wealth funds. Rasmussen believes that if not for the looming fear of tariffs, the market should already be at $150,000.
Ask Aime: How will Bitcoin's price change following Trump's tariffs?
Rasmussen also thinks that some tariffs will be rolled back and that the Federal Reserve is still on track to cut interest rates this year, despite the central bank being in wait-and-see mode amid shifts in trade and immigration policy.
Standard Chartered’s Global Head of Digital Assets Research reiterated his $200,000 year-end price target for Bitcoin, viewing the asset as a winner. He believes that digital assets, as the tip of the spear in growth assets, were the first to pull back and may also be the first to bottom out and rebound.
Cosmo Jiang, a general partner at the crypto asset manager Pantera, believes that Trump’s tariffs are effectively a negotiating tool. He suggests that if the president becomes satisfied with other nations' responses, it could lead to a quick recovery across markets. Jiang also notes that digital assets, as the tip of the spear in growth assets, were the first to pull back and may also be the first to bottom out and rebound.
Bitcoin may be ceding ground to gold, but its portrayal as a store of value puts it in a better position than most digital assets. According to Jess Houlgrave, CEO of the crypto user interface company Reown, established projects with real-world adoption and clear utility, such as those in DeFi, may continue to thrive.
Among the bearish views, Bitcoin needs to stay above $76,500 until Americans pay their taxes on April 15 in order to maintain any positive momentum. arthur hayes, co-founder and former CEO of the crypto exchange BitMEX, made this prediction on X, formerly known as Twitter. A week ago, he foresaw Bitcoin hitting $110,000 first, citing the Fed’s views on tariff-linked inflation being transitory and a slowdown in the central bank’s balance sheet drawdown.
