Bitcoin Faces Volatility Amid Trump’s Tariff Announcement and Recession Concerns
In a market upheaval triggered by President Trump’s recent tariff announcement, Bitcoin and the broader cryptocurrency market experienced significant volatility. Here’s a detailed summary of the events and their implications for the future of Bitcoin.
Crypto Market Slides 3% Amid Trump’s Tariffs and Recession Fears
The cryptocurrency market took a sharp hit Friday as President Donald Trump’s newly announced tariffs sent shockwaves across global financial markets. Bitcoin dropped as much as 6%, briefly touching $82,000, while the broader crypto market shed around 3% amid rising fears of a global economic slowdown. The downturn came after Trump declared April 2 “Liberation Day” and announced a sweeping 10% baseline tariff on all US imports. Higher duties were also imposed on several major trading partners. Following Trump’s tariff announcements, the S&P 500 also saw significant losses.
The Drop in the Crypto Fear and Greed Index Doesn’t Mean Bitcoin is in Trouble
Bitcoin is experiencing market volatility due to broader macroeconomic conditions, falling 11.4% year to date. Despite this, the Crypto Fear and Greed Index, which measures market emotions from 0 (Extreme Fear) to 100 (Extreme Greed), has dropped to 28, indicating substantial fear among investors. Analyst Lark Davis noted that the index plunged to 25 on April 3, even when Bitcoin was trading around $80,000. This suggests that the recency bias might be inflating fear around Bitcoin’s price.
Bitcoin Market Sentiment Worsens as Price Declines
Bitcoin’s market sentiment has worsened as the Bull Score Index drops to 10. The price of Bitcoin has resumed its downward trajectory, experiencing a 5.7% decline in the past 24 hours and is currently down approximately 24.7% from its all-time high recorded in January. Analysts are closely monitoring various indicators to predict Bitcoin’s next move, with CryptoQuant analyst Julio Moreno highlighting the significance of the CryptoQuant Bull Score Index as a tool to measure market sentiment for Bitcoin.
Top 3 Cryptocurrencies To Watch This Weekend
The cryptocurrency market continues its downward trajectory. Bitcoin (BTC) has fallen to the $82,000 level. The global crypto market cap has dipped 3.1% in the last 24 hours to $2.75 trillion. The low prices could present a good entry point for many new crypto investors. The crypto market dip comes after President Trump said the US would impose reciprocally tariffs on several countries from Apr. 2. Trump called it “Liberation Day” for Americans. The move seems to have rubbed investors negatively. According to CoinGlass, the cryptocurrency market faced $244.27 million in liquidations in the last 24 hours. Market participants may be weary about investing in risky assets. Macroeconomic headwinds also present considerable challenges to the crypto market.
Whales’ Rolling Window: Royal Flush and Macro Uncertainty Impact on Crypto
Due to high interest rates and macro uncertainty, gold and Bitcoin may see enhanced roles as broad equivalents and offshore liquidity pools. Gradual declines in US and EU interest rates could support long-term rises in gold and Bitcoin, with commodities also benefiting. However, it is not a favorable time for stock and altcoin investments. Macro uncertainty has become the theme of 2025, with the Trump administration’s policies leading to portfolio rebalancing in global assets.
