The financial market was hit by global tariffs announced by President Donald Trump on April 2nd. He named this event the "Day of Liberation".
Stock values sharply declined as investors reacted to this news. Major indices recorded losses. The cryptocurrency market was no exception, with Bitcoin and other altcoins experiencing a downturn due to massive liquidations.
Trump Tariffs Trigger Market Collapse
Stocks plummeted on Thursday. The S&P 500 dropped 4.84%, recording its worst decline since 2020, following Donald Trump's announcement of comprehensive tariffs. The Dow Jones fell 1,679 points (-3.98%) to 40,545.93. The Nasdaq plunged 5.97% to 16,550.61. A panic sell-off occurred in the market.
The chaos extended to the cryptocurrency market. Large-scale liquidations wiped out leveraged positions. In the past 24 hours, 110,543 traders were liquidated. Total losses amounted to $242.12 million.
The market is struggling in the aftermath of Trump's Day of Liberation. It remains uncertain whether the cryptocurrency market can recover and how quickly.
Analysts Predict Bitcoin's Next Move Amid Trade War Concerns
In an exclusive interview with BeInCrypto, cryptocurrency analyst and founder of The Coin Bureau, Nick Percurio, maintained an optimistic outlook. While acknowledging that imposed tariffs could lead to price declines, he suggested the price could drop to $73,000 or rise to $88,000.
"The good news is that trading volume has been low in recent weeks, and the cryptocurrency fear and greed index remains in fear. This could indicate we are at or very close to the market bottom. Therefore, I am quite confident that BTC will rebound here in the long term. The question is timing," Percurio said.
Additionally, in an April 3rd X post, popular cryptocurrency analyst Michael van de Poppe confirmed this optimistic view. Poppe noted that BTC attempted to break out of a narrow range after the tariff announcement.
However, BTC quickly fell back within the range, confirming $87,000 as a major resistance level. According to van de Poppe, the critical support level is $80,000. He stated that as long as BTC maintains this level, the uptrend will continue, with a high likelihood of another rally.
Will History Repeat? BTC's Potential Rise Amid New Tariff Tensions
In an X post, cryptocurrency analyst Ash Crypto examined BTC's historical performance during the US-China trade war. Looking at May 2019, Ash noted that after Trump imposed tariffs on China and China retaliated, stocks plummeted, but BTC's value surged.
"Bitcoin (BTC) jumped from $3,500 in early 2019 to nearly $13,800 by June 2019. The price increase coincided with escalating trade tensions. BTC appeared to be a hedge against economic uncertainty. Both gold and BTC performed well, showing investors were moving to safe-haven assets," Ash explained.
As new tariffs are implemented, the market may show a similar reaction. Especially if China retaliates, stock market volatility could increase, and investors might move to assets like BTC.
However, the Federal Reserve's stance is a key difference this time. In 2019, the Fed lowered rates three times, injecting liquidity into the market. In 2025, persistent inflation might prevent similar rate cuts. This could limit BTC's potential for rise.
