- Bitcoin Price has fallen to around $85,000, down from its peak of nearly $110,000, as markets anticipate Trump’s upcoming tariff announcements.
- Analysts warn that Trump’s “Liberation Day” trade tariffs could cause significant market volatility, potentially pushing Bitcoin below $80,000.
- Despite short-term concerns, some experts predict Bitcoin will strengthen long-term as institutional investors seek alternatives to traditional US-led financial systems.
Cryptocurrency markets are bracing for potential upheaval as traders await President Donald Trump‘s "Liberation Day" trade tariff announcements scheduled for today at 4pm ET in the White House Rose Garden. The Bitcoin price is currently hovering around $85,000, significantly below its post-election peak of almost $110,000, as uncertainty grows about the economic impact of impending tariffs.
Market analysts are warning of severe short-term consequences for cryptocurrencies. "Trump’s ‘Liberation Day’ is going to be an atomic bomb on the current markets—and crypto isn’t safe in the immediate term," said Zach Burks, CEO of NFT company Mintology. Bitcoin has already retreated from last week’s highs of nearly $90,000 as investors adopt cautious positions ahead of the announcement.
Market Volatility Expectations
The cryptocurrency market has displayed mixed performance over the past 24 hours as traders remain on the sidelines. Gadi Chait, investment manager at Xapo Bank, noted, "Bitcoin investors have been bracing for today’s announcement, so a price drop comes as no surprise." Bitcoin has been trading in a wide range between $76,600 and $94,500 recently, with analysts suggesting that breaking below the lower boundary could signal a significant shift in market sentiment.
Experts worry about immediate negative impacts, with Burks predicting that Ethereum could drop to $1,600 and Bitcoin could fall below $80,000 once countries begin retaliating against Trump’s tariffs. The situation creates what some describe as a "Washington DC and Wall Street perfect storm" for cryptocurrency markets.
Long-Term Outlook Remains Positive
Despite short-term concerns, some analysts remain optimistic about Bitcoin’s long-term prospects. Burks suggests that as "the rules of international trade" are rewritten, Bitcoin prices could eventually surge as institutional investors move capital away from "increasingly unstable U.S.-led institutions."
Trump’s influence on cryptocurrency markets extends beyond policy. His promise to create a U.S. Bitcoin reserve and crypto stockpile, alongside his business interests in World Liberty Financial and Trump Media and Technology Group, represents what Burks calls "soft power" in the crypto sector.
For traders seeking to stay informed during this volatility, market experts recommend following regular updates through resources like CryptoCodex, a daily newsletter focused on cryptocurrency markets and trends.
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