Bitcoin plummeted below £66,929 ($88,000) on 2 April 2025, as US President Donald Trump's 'Liberation Day' tariffs, unveiled in a dramatic White House Rose Garden speech, rattled global markets.
The crypto market shed over £157 million ($200 million) in hours, with traders reeling from the shockwaves of Trump's latest trade salvo. As of 3 April 2025, this tariff-driven chaos has sparked fears of a broader bitcoin price crash, despite earlier optimism tied to Trump's crypto-friendly stance.
Tariff Fallout Triggers Market Panic
Trump's tariff rollout slapped a 10% levy on Australian exports, 15% on 15 other countries, and 25% on foreign cars, aiming to 'level the playing field' for US industries.
Bitcoin, hovering near £69,291 ($91,000) before the speech, crashed to £64,567 ($85,000) within hours. 'Trump's "Liberation Day" is an atomic bomb on markets—crypto isn't safe short-term,' warned Zach Burks, CEO of Mintology, in comments reported by sources. The sell-off echoed broader market unrest, with the S&P 500 dropping 1.5% as inflation fears spiked.
The tariffs, targeting high-value trade like Australia's £1.2 billion ($1.58 billion) beef exports, fueled concerns of rising costs and a stronger US dollar, squeezing risk assets like bitcoin. The Federal Reserve's reluctance to cut rates—amplified by Chair Jerome Powell's 2 April 2025 remarks about a 'bumpy path' to 2% inflation—further eroded confidence.
Trump's crypto pivot—once a boon with his World Liberty Financial venture and bitcoin reserve talk—now seems at odds with his tariff agenda. 'It's becoming clearer bitcoin is the retail doomsday asset, while gold is the institutional haven,' Burks added. The crash wiped out gains from a post-inauguration surge past £86,614 ($114,000), exposing bitcoin's vulnerability to macroeconomic shifts.
Long-Term Hope Amid Short-Term Chaos
Despite the crash, some analysts see a silver lining. Burks argued that while tariffs spark 'mass drop-offs' now, bitcoin could 'rocket long-term' as trade rules rewrite capital flows. Institutional investors might shift from 'unstable US-led institutions' to crypto, he added.
Amid the wreckage, some see potential. Burks suggested that while tariffs trigger 'mass drop-offs' now, bitcoin could 'rocket long-term' as global trade adjusts. If inflation persists, driving investors away from fiat, bitcoin's fixed supply might regain favour.
Analysts note Trump's crypto czar, David Sacks, could push policies to soften the blow—perhaps via tax incentives or clearer regulations—though no firm plans surfaced by 3 April 2025.
The broader market context darkens the outlook. Rising Treasury yields and a Goldman Sachs recession warning have spooked investors, while bitcoin miners brace for higher costs if tariffs hit Chinese hardware. Yet, historical patterns suggest crypto often rebounds from policy-induced dips, significantly if Trump's trade war softens.
What Can We Expect
Trump's tariffs have flipped his crypto narrative from savior to disruptor. As of 3 April 2025, bitcoin teeters on a precipice, battered by trade shocks yet clinging to speculative hope. The collision of Trump's dual roles—trade warrior and crypto advocate—has left the market in a precarious dance.
For now, traders hold their breath, caught between the immediate sting of 'Liberation Day' and the faint promise of a rebound fueled by Trump's own crypto ambitions—or a broader shift away from traditional financial systems. Only time will tell.
