Bitcoin Plummets 5% as Trump’s Tariffs Rattle Markets: 2025 Price Analysis

By: Payel

Published on: Apr 03, 2025

Bitcoin’s Sharp Volatility: Tariffs Trigger $180M Liquidation

Bitcoin (BTC) faced intense turbulence on April 3, 2025, as President Donald Trump’s sweeping tariff announcements rattled global markets. The cryptocurrency surged briefly to $87,000\ast \ast beforeplunging\ast \ast 5$83,500, erasing weekly gains. Over $180M\ast \ast inleveragedpositionswereliquidated,withBitcoinfuturesaccountingfor\ast \ast$62M longs and $118Mshorts\ast \ast .Ethereum(ETH)saw\ast \ast$89M liquidated, mostly bullish bets.

Key Stats:

• BTC High/Low: 87,000→87,000→83,500 (-5%).


• Liquidations: $180M (BTC + ETH).


• Current Price (April 2025): $83,339.

Global Markets React: Stocks, Forex, and Commodities

Equities Tumble on Trade War Fears

• Nikkei 225 (Japan): -3%.


• Hang Seng (Hong Kong): -1.5%.


• US Futures: Dow (-2.39%), S&P 500 (-2.91%), Nasdaq (-3.23%).


• FTSE 100 (UK): -1.1%, led by miners and banks.

Trump’s Tariff Breakdown:

• 25% on auto imports.


• 10% baseline tariff on all foreign goods.


• 50% on select Chinese exports; 26% on Indian goods.

Trump’s Statement:

“April 2, 2025, marks the rebirth of American industry. We’re reclaiming our destiny and Making America Wealthy Again.”

Why Did Bitcoin Fall? Tariffs vs. Risk Assets

1. Risk-Off Sentiment

Investors fled volatile assets (stocks, crypto) for safe havens like gold, which hit a record $3,150/oz.

2. Liquidation Cascade

Margin calls triggered mass sell-offs as BTC breached key support levels.

3. Sector-Specific Pressures

• Tech Stocks: Nasdaq futures slid 3.23% amid tariff threats on Chinese semiconductors.


• Retailers: Higher import costs threaten profit margins.

Analyst Insights: Bearish Now, Bullish Later?

Pessimistic Short-Term Outlook

• 
  

  BRN’s Valentin Fourner:

  
  

  
  

  “Near-term volatility is inevitable, but institutional buying could revive BTC’s rally toward $90K.”

  
  

  
  

Long-Term Catalysts

• ETF Inflows: BlackRock’s IBIT saw $1.2B inflows pre-tariffs.


• Halving Aftermath: Reduced supply may offset macro headwinds.

Bitcoin vs. Gold: Safe-Haven Shifts

Takeaway: Gold’s stability contrasts with crypto’s sensitivity to macro shocks, but BTC’s long-term growth potential remains intact.

Technical Analysis: BTC Price Forecast

Key Levels to Watch

• Support: $80,000 (psychological level).


• Resistance: $85,000 (pre-tariff consolidation zone).

Chart Patterns:

• Descending Triangle: Breakdown suggests further downside to $78K.


• RSI: 38 (oversold signal could trigger bounce).

Institutional Adoption: Silver Lining?

Despite the sell-off, institutional interest persists:

1. MicroStrategy (MSTR): Added 1,200 BTC to its treasury this week.


2. Fidelity: Launched Ethereum staking for institutional clients.


3. Central Banks: Exploring BTC as a reserve asset amid dollar weakness.

FAQs: Bitcoin, Tariffs, and Markets

1. How do tariffs affect Bitcoin?
Tariffs spur risk aversion, prompting investors to dump volatile assets like crypto for gold or bonds.

2. Will Bitcoin recover?
Analysts expect a rebound to $90K if ETF inflows resume and tariffs ease.

3. Why did gold rise while Bitcoin fell?
Gold is a traditional safe haven; BTC is still perceived as a risk asset.

4. What sectors are most impacted by tariffs?
Auto, tech, and retail face higher costs and supply chain disruptions.

Conclusion: Navigating Crypto’s Crossroads

Bitcoin’s drop underscores its sensitivity to macro shocks, but institutional adoption and halving dynamics offer long-term hope. Traders should monitor:

• Tariff Enforcement: Scaling back could revive risk appetite.


• Fed Policy: Rate cuts may boost crypto liquidity.


• Technical Levels: Hold above $80K to avoid deeper correction.

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