- Cryptocurrency markets rose Tuesday as investors anticipated less severe tariffs from President Trump’s upcoming announcement.
- Bitcoin briefly touched $85,000, rising 2.5% over 24 hours, while altcoins like Ethereum and Dogecoin also saw significant gains.
- Market analysts remain cautious about potential volatility following Trump’s “Liberation Day” tariff implementation scheduled for Wednesday.
Cryptocurrencies experienced notable gains on Tuesday as market sentiment improved regarding the expected tariffs from U.S. President Donald Trump. According to data from CoinGecko, Bitcoin’s price reached approximately $84,900, representing a 2.5% increase over the past 24 hours, briefly touching the $85,000 mark for the first time since last week.
The crypto market upswing coincided with investor expectations that Trump’s tariff announcements, scheduled for Wednesday during his self-declared “Liberation Day,” would be less harsh than previously feared. Sid Powell, CEO and co-founder of Maple, told Decrypt, “Traders are buzzing over Trump’s tariff chatter for April 2 and are leaning to the hint that there will be softer policies than expected.”
Market Response and Analyst Caution
Major altcoins followed Bitcoin’s positive momentum. Ethereum traded at $1,917 (up 4%), Dogecoin reached just over $0.17 (up 3%), and Cardano increased by 2.5%. This recovery comes after weeks of declining prices across cryptocurrency markets.
Despite the current optimism, analysts remain wary about potential market implications. Powell cautioned that “risk assets like crypto might take a beating if tariffs end up boosting the dollar or slowing global growth.” Similarly, Pedro Lapenta, head of research at Hashdex, told Decrypt that investors should expect “continued volatility in global markets as the tariffs take shape,” though he noted that Tuesday’s price movements suggested institutional demand was “picking up.”
Broader Economic Context
The cryptocurrency gains occurred against a backdrop of mixed economic signals. The March Purchasing Managers’ Index showed prices increasing at their fastest rate since mid-2022 while factory activity contracted. Last week, the Conference Board’s consumer confidence index fell to its lowest level in four years.
Traditional markets showed similar cautious optimism, with the tech-focused Nasdaq rising 0.87% and the S&P 500 up 0.38%. Notably, Gold also increased in value, continuing its recent upward trend as a safe-haven asset.
Trump will announce his tariffs with immediate effect on Wednesday in a Rose Garden ceremony at the White House. Joe DiPasquale, CEO of crypto fund manager BitBull Capital, suggested to Decrypt that the modest market recovery stemmed from expectations that tariffs would be more targeted, potentially excluding some countries and avoiding cumulative levies on specific goods.
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