Bitcoin plunged below £66,929 ($88,000) on April 2, 2025, after U.S. President Donald Trump’s ‘Liberation Day’ tariffs, announced in a dramatic White House Rose Garden speech, sent shockwaves through global markets. The crypto market lost over £157 million ($200 million) within hours, leaving traders stunned by Trump’s latest trade move. As of April 3, 2025, the tariff-driven turmoil has fueled concerns of a deeper Bitcoin price drop, despite previous optimism surrounding Trump’s pro-crypto stance.
Market Panic Erupts Amid Tariff Fallout
Trump’s tariff policy imposed a 10% duty on Australian exports, 15% on goods from 15 other nations, and 25% on foreign automobiles, aiming to ‘level the playing field’ for U.S. industries.
Bitcoin, which was trading near £69,291 ($91,000) before the announcement, tumbled to £64,567 ($85,000) within hours. “Trump’s ‘Liberation Day’ is an atomic bomb on markets—crypto isn’t safe in the short term,” warned Zach Burks, CEO of Mintology, as reported by sources. The sharp sell-off mirrored broader market turmoil, with the S&P 500 falling 1.5% amid rising inflation concerns.
The tariffs, which hit high-value trade sectors such as Australia’s £1.2 billion ($1.58 billion) beef exports, raised fears of increasing costs and a strengthening U.S. dollar, putting pressure on risk assets like Bitcoin. Market confidence took another hit as the Federal Reserve signaled caution, with Chair Jerome Powell stating on April 2, 2025, that the road to achieving 2% inflation would be “bumpy,” reinforcing expectations that rate cuts would remain off the table.
Trump’s shift toward crypto—once seen as a boost due to his World Liberty Financial initiative and discussions of a bitcoin reserve—now appears to clash with his tariff policies. “It’s increasingly evident that bitcoin is the go-to asset for retail investors in times of crisis, while gold remains the preferred haven for institutions,” noted Zach Burks. The recent plunge erased gains from its post-inauguration rally above £86,614 ($114,000), highlighting bitcoin’s susceptibility to broader economic forces.
Long-Term Optimism Amid Short-Term Turmoil
Despite the sharp decline, some analysts remain hopeful. Burks suggested that while tariffs are causing steep sell-offs now, Bitcoin could “soar in the long run” as shifting trade policies reshape global capital flows. He also noted that institutional investors may gradually move away from “unstable U.S.-led financial systems” in favor of crypto.
Amid the turmoil, some see opportunity. Burks pointed out that although tariffs are causing widespread sell-offs now, Bitcoin could “surge in the long term” as global trade dynamics evolve. If inflation continues to rise and erode confidence in fiat currencies, Bitcoin’s limited supply could become attractive again.
Analysts also highlight the potential influence of Trump’s crypto czar, David Sacks, who might introduce policies—such as tax breaks or regulatory clarity—to cushion the impact. However, as of April 3, 2025, no concrete plans have been announced.
The broader market landscape adds to the uncertainty. Climbing Treasury yields and a recession warning from Goldman Sachs have unsettled investors, while Bitcoin miners face potential cost increases if tariffs target Chinese hardware. However, historical trends indicate that crypto often recovers from policy-driven downturns—especially if Trump’s trade war de-escalates.
What Lies Ahead
Trump’s tariffs have reversed his stance on crypto from a champion to a disruptor. As of April 3, 2025, Bitcoin stands on shaky ground, buffeted by trade turmoil yet still holding on to speculative optimism. The clash between Trump’s dual roles as both a trade aggressor and a crypto supporter has left the market in a delicate position.
For the time being, traders are in suspense, caught between the immediate impact of ‘Liberation Day’ and the distant hope of a recovery driven by Trump’s crypto ambitions—or a wider move away from conventional financial systems. Only time will reveal what happens next.
