Trump's Tariffs Spark Bitcoin Volatility, Prices Fluctuate 10%

President Donald Trump’s tariff policies have significantly impacted the global market, with the imposition of taxes on various countries causing intense fluctuations in the cryptocurrency market. Notably, the Bitcoin market has experienced heightened volatility, leading to cautious investor sentiment. Trump's aggressive tariff measures, including a 25% tax on Mexico and Canada and a 10% tax on China, have introduced market uncertainty. This has resulted in a sell-off of risky assets, including cryptocurrencies, as Bitcoin trades in the mid-$80,000s. Investors are concerned that the inflation caused by these tariffs may prevent the Federal Reserve from raising interest rates, which could reduce the viability of non-interest-bearing assets like Bitcoin.

Despite the short-term market volatility, experts suggest that Trump’s tariff policies could have long-term benefits for the cryptocurrency landscape. The new policies may solidify Bitcoin’s role as a hedge against inflation, as it has historically performed well during economic instability. Tariffs could weaken the dollar’s strength by increasing costs for businesses and consumers, potentially leading to increased demand for alternative assets like Bitcoin. Zach Pandl, head of research at Grayscale, noted that tariffs could undermine the dollar’s dominant role, creating space for competitors, including Bitcoin. While prices have decreased in the short term, the first few months of the Trump Administration have raised confidence in Bitcoin’s long-term potential as a global monetary asset.

During this period of economic uncertainty, institutional investors continue to acquire Bitcoin, and Bitcoin ETFs have seen consistent inflows. Trade restrictions and sanctions may reduce liquidity in traditional finance, driving more investors towards decentralized assets. This shift could further cement Bitcoin’s position in the market. The recent market volatility has seen Bitcoin trading at $82,500 at the beginning of the day, with an uptrend pushing it to $82,950 by 6:00 UTC. A golden cross was observed, intensifying the uptrend to $84,460 by 10:00 UTC. However, buying pressure reached saturation, leading to a steep downtrend validated by a death cross at 9:40 UTC. Bitcoin dipped to $82,716 before recovering to $85,346 within an hour. Despite facing rejection at the $85,500 level, Bitcoin found support at $84,744, allowing it to fluctuate and test resistance. After a few failed attempts, the coin eventually dipped, with selling pressure leading to a stable downtrend finding support at $83,990. Buying pressure regained control early on April 2, pushing BTC up to $85,200.

Bitcoin has generated significant market interest, with investors eagerly awaiting announcements by Trump. If the market conditions improve, there could be exciting developments in the coming days. Currently, Bitcoin appears to be on the verge of correction, with overbought conditions looming. If buying pressure persists, BTC could make impressive progress towards the $85,500 resistance level. The long-term outlook for Bitcoin remains positive, as the cryptocurrency continues to attract institutional investors and gain traction as a hedge against inflation and economic uncertainty.