After a brief recovery on April 1, Bitcoin and major altcoins began dipping again ahead of Liberation Day.
The market started the week on a stronger note, bouncing back as traders welcomed signs that U.S. President Trump had finally landed on a trade strategy after weeks of unpredictable tariff threats. His back-and-forth stance on major trading partners had kept investors on edge, so even a hint of clarity brought some relief.
Ethereum, Dogecoin, and Solana joined Bitcoin (BTC), which rallied more than 3.3% on Tuesday, in the broader market recovery. Ethereum (ETH) climbed to around $1,917, up 4% on the day. Dogecoin (DOGE) touched just over $0.17, a 3% rise, while Cardano (ADA) ticked up 2.5%. Still, the momentum fizzled out quickly as underlying concerns came back into focus.
However, with Trump’s reciprocal tariffs set to be introduced today, market anxiety has resurfaced.
At press time, BTC had fallen 1.36% from its April 1 high of $85,413. Major altcoins like ETH, XRP (XRP), SOL, and DOGE have been hit harder, seeing losses ranging between 3-5%.
The global market cap fell 2.1% to $2.85 trillion as a risk-off sentiment prevailed. Traditional markets, including the S&P 500 and Russell 2000, were also down over the past week, as major tech stocks like Nvidia, Amazon, and Tesla slipped 5–7% over the same period.
Analysts are currently divided over the market’s next course of action.
Will history repeat?
According to crypto analyst Ash Crypto, the last major tariff standoff in 2019 saw the Nasdaq sink 12% while Bitcoin surged nearly 70% as investors looked for safety outside traditional markets.
BTC jumped from under $6,000 to almost $13,800 in just a few months, while gold also saw a similar safe-haven inflow.
That move, the analyst explained, wasn’t driven by fear alone—it was also fuelled by the Federal Reserve implementing three rate cuts that year, “flooding the market with cheap money,” which helped lift both stocks and crypto later in the cycle. Essentially, traders were bracing for the worst but also banking on central banks to soften the blow.
Fast forward to 2025, and while the setup feels familiar, the analyst pointed out a few key differences.
According to the analyst, inflation is already running hot, which limits the Fed’s ability to maneuver. Unlike 2019, they might not be able to cut rates aggressively this time around. That means risk assets, including crypto, may not have the same cushion if markets start to wobble.
Still, Ash Crypto suggests that Bitcoin could decouple from equities again, especially if trade tensions escalate further. However, he cautioned that if China retaliates with its own set of tariffs or if inflation continues to rise, the Federal Reserve may delay rate cuts, potentially triggering renewed volatility across both crypto and traditional markets.
Experts are divided
Former BitMEX CEO Arthur Hayes argues that Bitcoin could actually thrive in the current environment. In his view, tariffs won’t stop Bitcoin; in fact, they might accelerate its next big move.
Hayes believes if the economy slows down because of rising import costs, the Federal Reserve will be forced to step in with liquidity measures, just like it did in past crises.
Hayes forecasted a potential push to $110,000 if the Fed eases its monetary policy in response to slowing growth. He also noted that if tariffs are pushed beyond 50%, the rally could strengthen even further, fuelled by rising demand for decentralised assets.
However, critics like Peter Schiff aren’t buying the bullish narrative. The long-time Bitcoin skeptic argues that Liberation Day could end up exposing crypto’s underlying fragility, especially if the new tariffs trigger economic chaos. In that scenario, Schiff predicts Bitcoin could tumble below $50,000.
He’s also dismissive of the optimism around Trump’s pro-crypto stance, saying it won’t matter much if inflation spikes and global growth takes a hit. In his view, traditional safe havens like gold and bonds are far more likely to outperform speculative assets like Bitcoin if things get rough.
Market analyst Alex Kruger has also warned that a hardline tariff policy unveiled on Liberation Day could trigger a 10-15% crash in the crypto market within days. See below:
