On April 1, 2025, the cryptocurrency market surged ahead of U.S. President Donald Trump's tariff announcement on “Liberation Day” (April 2nd). Bitcoin reached $84,900, but analysts still worry about the impact of the trade war. Will crypto continue its upward trend or face new challenges?
Crypto Rises Ahead of Tariff Announcement
Bitcoin has risen more than 2.5% in 24 hours, reaching $84,900 and nearing the $85,000 mark – the highest since last week, according to CoinGecko. Major altcoins also increased: Ethereum (ETH ~$1,917, +4%), Dogecoin ($DOGE ~$0.17, +3%), Cardano ($ADA , +2.5%), and Solana ($SOL ~ $150). This surge occurred as investors are optimistic that Trump’s tariffs will be lighter than expected, reducing the risk of a global trade war.
Sid Powell, CEO of Maple, remarked to Decrypt: “Traders are buzzing about Trump’s tariffs on April 2nd, leaning towards the possibility that the policy will be softer than expected.” He believes that after weeks of falling prices, FOMO sentiment could drive Bitcoin's rapid recovery. However, Powell warns: “Risk assets like crypto could suffer if tariffs increase USD prices or slow global growth. Volatility is certain, and investors must wait to see if the predictions about soft policy are correct.”
Market Context: Concerns About Trade War
In recent weeks, Bitcoin and other risk assets have fluctuated significantly due to concerns about Trump’s tariffs. The U.S. president has repeatedly announced strong measures against major trading partners, creating instability in the market. The March Purchasing Managers' Index (PMI) showed the fastest price increase since mid-2022 while factory activity shrank. Last week, the consumer confidence index of #ConferenceBoard fell to a four-year low, raising concerns about stagflation – a combination of declining growth and rising inflation.
Pedro Lapenta, head of research at Hashdex, told #Decrypt : “From a risk management perspective, the market should stay on the sidelines until there is more clarity on the impact of the tariffs.” He predicts volatility will continue, but the rise on April 1st indicates that “the market is shifting to a buying mode and expecting the tariff impact to be less severe.” Institutional demand is also increasing, according to Lapenta.
Market Reaction: Optimistic but Cautious
Other risk markets also saw slight increases: Nasdaq (+0.87%), S&P 500 (+0.38%). However, gold – a safe-haven asset – also rose, indicating that investors remain cautious. Joe DiPasquale, CEO of BitBull Capital, commented to Decrypt: “Investors are optimistic that tariffs will target specific areas, excluding certain countries and avoiding progressive taxes.” He believes this has driven the recovery of crypto, but “the market remains cautious as the actual impact depends on the scope and implementation of the tariffs.”
Trump will announce tariffs in the Rose Garden at the White House on Wednesday (April 2nd), effective immediately. He asserts no concern about short-term impacts, but investors remain anxiously awaiting details.
Impact on the Crypto Market
Bitcoin (~$84,900): Up 2.5%, but trade war risks could exert long-term pressure.
Altcoin: ETH, DOGE, SOL up 3-4%, benefiting from positive sentiment, but still prone to volatility (SOL down 50% due to memecoin).
Overall market: Crypto slightly rebounds, but FOMO sentiment could reverse if tariffs exceed expectations (South Korea $9.8 million, Trump supports crypto).
Conclusion: “Liberation Day” – Opportunity or Challenge?
The price increase of Bitcoin and altcoins ahead of Trump’s “Liberation Day” shows confidence in soft tariff policies. But with the risk of trade war and stagflation, the crypto market remains volatile. Will this upward trend last, or will investors face new turbulence? When Trump announces the tariffs, the answer will soon be clear.
Risk Warning: Crypto investment carries high risks due to price volatility and macroeconomic instability (Trump's tariffs). Please consider carefully before participating.