Bitcoin Drops 5.5% Amid Trump Tariffs, Experts Remain Bullish

Bitcoin's price has been under significant pressure in recent weeks, largely due to the tariffs imposed by U.S. President Donald Trump. Despite this, several experts remain optimistic about the cryptocurrency's future prospects. Bitwise, a prominent crypto asset manager, has maintained its year-end price target for Bitcoin at $200,000. Ryan Rasmussen, the company’s Head of Research, believes that once the market stabilizes from the current volatility, Bitcoin will begin to recover and climb higher. He likened the current situation to storing good news as "dry powder" that will fuel the market's upward movement once uncertainty subsides.

On Thursday, Bitcoin's price fell by 5.5%, trading around $82,000, as investors reacted to Trump's “reciprocal” tariffs. This decline mirrored the performance of the tech sector, where equities dropped due to growth concerns and fears of retaliatory trade measures. Despite this correlation, Rasmussen noted that Bitcoin has outperformed gold, the S&P 500, and the Nasdaq since November 5. He attributed this performance to a series of positive developments, including the establishment of a Bitcoin reserve by the White House, regulatory shifts, and the involvement of sovereign wealth funds. Rasmussen also expressed confidence that some tariffs will be rolled back and that the Federal Reserve will cut interest rates this year, despite the central bank's cautious stance.

Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, reiterated his $200,000 year-end price target for Bitcoin in a research note. He views the asset as a strong performer, despite the current market conditions. Cosmo Jiang, a general partner at the crypto asset manager Pantera, suggested that Trump’s tariffs are a negotiating tool that could lead to a quick market recovery if the president is satisfied with other nations' responses. Jiang believes that digital assets, being at the forefront of growth assets, were the first to pull back and may also be the first to rebound.

Jess Houlgrave, CEO of the crypto user interface company Reown, highlighted that while Bitcoin may be losing ground to gold, its status as a store of value positions it favorably compared to other digital assets. Houlgrave noted that established projects with real-world adoption and clear utility, such as those in decentralized finance (DeFi), may continue to thrive despite market volatility. Arthur Hayes, co-founder and former CEO of the crypto exchange BitMEX, warned that Bitcoin needs to stay above $76,500 until April 15 to maintain positive momentum. A week prior, he had predicted that Bitcoin would hit $110,000, citing the Fed’s views on tariff-linked inflation being transitory and a slowdown in the central bank’s balance sheet drawdown.