Bitcoin’s Future Amid Trump’s ‘Liberation Day’ Tariffs: Analysts Weigh In

As the United States navigates a new era in trade policy with Donald Trump’s declaration of ’Liberation Day,’ the cryptocurrency market finds itself at a critical juncture. Will these tariffs, aimed at renegotiating foreign trade dynamics, weaken or strengthen Bitcoin’s position? Read on to find out what analysts are saying about the potential impacts on the crypto landscape.

Trump’s ‘Liberation Day’ Tariffs and Crypto Outlook

Donald Trump’s declaration of “Liberation Day” marks a pivotal shift in U.S. trade policy, introducing fresh uncertainty into the macroeconomic landscape. These tariffs, positioned as a strategic move to renegotiate foreign trade dynamics, have sparked speculation across global markets and within the crypto industry. Rather than weakening crypto, some believe the move could boost demand for decentralized assets. Analysts suggest potential market tightening might prompt central banks to ease monetary policy, aligning with institutional accumulation and bullish technicals that suggest Bitcoin [BTC] is primed for a breakout. Eric Trump’s endorsement has amplified retail confidence as policy uncertainty fuels interest in decentralized assets.

Bitcoin (BTC) Needs to Reclaim Price Levels for Next Bull Run

Bitcoin faces resistance before a possible bullish continuation. One popular analyst highlighted the 200-day MA at $86,200 and the 50-day MA at $88,300 as critical reversal points. BTC hit a new all-time high of almost $110,000 in mid-January but has since declined to trade at around $86,500, representing a 6% decline on a monthly scale. According to some analysts, the bull cycle might kick in again if BTC breaks out above these key resistance levels.

Grayscale Launches Bitcoin Options ETFs Focused on Income Generation

Asset manager Grayscale has announced the launch of two new Bitcoin options-based ETFs, the Grayscale Bitcoin Covered Call ETF (BTCC) and Grayscale Bitcoin Premium Income ETF (BPI). These funds aim to provide investors with dividend income by leveraging call-writing strategies on the company’s existing Bitcoin ETF products. BTCC will focus on income generation by writing or selling call options with strike prices close to Bitcoin’s spot price. The launch follows Bitcoin’s recent range-bound movement due to President Trump’s tariff announcements.

Institutional FOMO? Bitcoin Treasury Holdings Skyrocket

Institutional holders have been buying thousands of Bitcoin (BTC) tokens in the past few weeks as market sentiment appears to be improving. Prominent buyers include Strategy, headed by Michael Saylor, whose BTC treasury holds 528,185 tokens after purchasing over $2.5 billion worth of the digital asset in March. Additionally, Tether, the company behind the popular stablecoin USDT, informed that they bought 8,888 BTC tokens and now hold nearly $8 billion worth of Bitcoin. Finally, a Japanese Bitcoin treasury company called Metaplanet bought another 696 BTC.

Cryptocurrency: 4 Trending Coins To Watch Under Trump’s Era (Focus on BTC)

The cryptocurrency market anticipates a new bull momentum marked by rising ETF development under the new US SEC regime. With the US SEC contemplating approving pending ETF applications in May, this approval could help shift major coin prices. Bitcoin (BTC) is set to soar as a result of this approval, igniting a bullish wave for the cryptocurrency.

Eric Trump Confirms No Crypto Talks with President Trump, Launches Bitcoin Mining Venture

Eric Trump, son of President Donald Trump, has stated that there is “virtually none” communication about crypto between him and the President. Despite this, Eric and his brother Donald Trump Jr. are launching American Bitcoin Corp., a Bitcoin mining-focused venture with Hut 8 Corp. The new company aims to focus on Bitcoin mining and the development of a Strategic Bitcoin Reserve. Eric Trump will serve as Chief Strategy Officer, working closely with Hut 8 CEO Asher Genoot to merge existing Hut 8 mining operations with the newly formed entity. Hut 8 will contribute its rigs in return for an 80% stake.