Crypto markets react to Trump’s Liberation Day

After a brief recovery on April 1, Bitcoin and the main Altcoins started to dive before the Liberation Day.

The market began the week on a stronger note, bouncing while traders praised the signs that US President Trump had finally landed on a commercial strategy after weeks of unpredictable price threats. His back and forth position on the main business partners had maintained investors alongside, so even a hint of clarity brought a certain relief.

Ethereum, Dogecoin and Solana joined Bitcoin (BTC), which joined more than 3.3% Tuesday, in the wider recovery of the market. Ethereum (Ethn) climbed to around $ 1,917, up 4% over the day. Dogecoin (DOGE) touched just over $ 0.17, an increase of 3%, while Cardano (ADA) checked 2.5%. However, the momentum collapsed quickly while the underlying concerns are back.

However, with Trump’s reciprocal prices which should be introduced today, market anxiety has resurfaced.

At the time of the press, BTC fell 1.36% compared to its April 1 summit of $ 85,413. The main altcoins like ETH, XRP (Xrp), Soil and Doge were harder, seeing losses varying between 3 and 5%.

Global market capitalization fell 2.1% to 2.85 billions of dollars when a feeling of risk prevailed. The traditional markets, including the S&P 500 and Russell 2000, were also lowered during last week, while the main technological actions like Nvidia, Amazon and Tesla have slipped from 5 to 7% over the same period.

Analysts are currently divided on the next line of driving on the market.

Will history repeat itself?

According to For Crypto Ash Crypto analyst, the last major tariff impasse in 2019 saw the Nasdaq flow by 12% while Bitcoin jumped almost 70% while investors sought security outside traditional markets.

BTC increased from less than $ 6,000 to nearly $ 13,800 in a few months, while Gold also saw a similar tribes of safe.

This decision, explained the analyst, was not motivated by fear alone – it was also fueled by the federal reserve implementing three rate drops that year, “flooding the market with cheap money”, which helped raise the actions and the crypto later in the cycle. Essentially, traders were preparing for the worst, but also on central banks to soften the blow.

Quick advance until 2025, and although the configuration was familiar, the analyst underlined some key differences.

According to the analyst, Inflation is already hotwhich limits the capacity of the Fed to maneuver. Unlike 2019, they may not be able to reduce rates aggressively this time. This means that risk assets, including crypto, may not have the same cushion if the markets start to vacillate.

However, Ash Crypto suggests that Bitcoin could once again decline actions, especially if trade tensions are increasing more. However, he warned that if China retaliates with its own set of prices or if inflation continues to increase, the federal reserve can delay the rate reductions, Potentially trigger renewed volatility Through cryptographic and traditional markets.

Experts are divided

The old CEO of Bitmex Arthur Hayes arguments This bitcoin could really prosper in the current environment. In his opinion, the prices will not stop Bitcoin; In fact, they could accelerate its next big movement.

Hayes thinks that if the economy slows down due to the increase in import costs, the federal reserve will be forced to intervene with liquidity measures, just as it did during past crises.

Hayes has planned a potential thrust at $ 110,000 if the Fed softens its monetary policy in response to the slowdown in growth. He also noted that if the prices are pushed beyond 50%, the rally could be strengthened even more, fueled by an increase in demand for decentralized assets.

However, criticisms like Peter Schiff do not buy the Haussier story. Skeptical longtime bitcoin arguments This release day could end up exposing the underlying fragility of cryptography, especially if the new prices trigger economic chaos. In this scenario, Schiff predicts that Bitcoin could fall below $ 50,000.

He is also disdainful of optimism around Trump’s pro-Crypto position, saying that it will not have much importance if inflation increases and global growth takes a hit. In his opinion, traditional shelters such as gold and connections are much more likely to surpass speculative assets like bitcoin if things become difficult.

Market analyst Alex Kruger also warned that a lasting online price policy unveiled on the Liberation Day could trigger an accident of 10 to 15% on the cryptography market in a few days. See below: