The global cryptocurrency market experienced a sharp downturn last week, losing over $130 billion in market capitalization as investors reacted to the imminent implementation of President Donald Trump’s new tariffs.
Dubbed “Liberation Day,” the tariffs—set to take effect this week—will target a broad range of imported goods, intensifying market volatility and investor uncertainty.
As of Monday morning, Bitcoin fell below the $82,000 mark, trading at approximately $81,700. This marked the seventh consecutive day of losses for BTC/USD, fueled by fears of economic instability stemming from Trump’s tariff policies.
Market analysts remain divided on Bitcoin’s trajectory. While some, including Stockmoney Lizards, predict a local bottom between $80,000 and $82,000, veteran trader Peter Brandt has warned of a bearish wedge breakdown that could send prices as low as $65,635.
The broader cryptocurrency market has also suffered substantial losses. Ethereum dropped 10.9%, Ripple fell by 15%, Solana declined 10.1%, and Bitcoin (BTC) slipped 5.9% over the past week. The downturn has been exacerbated by a sell-off in U.S. stock futures, reflecting growing investor anxiety.
XRP has witnessed a dramatic 40% drop from its recent multi-year high of $3.40, now consolidating around $2.19. Despite positive developments, such as the SEC’s decision to drop its case against Ripple, the asset remains under pressure. Analysts highlight key support at $1.77 and resistance at $3.21, noting that a breakout above $3.21 could signal a bullish trend reversal.
The Kobeissi Letter reports that Trump’s tariffs will impact over $1.5 trillion worth of imports by the end of April, with reciprocal tariffs expected to affect up to 25 countries.
President Trump has designated April 2 as “Liberation Day,” marking the introduction of tariffs exceeding 20% on targeted imports. According to the Wall Street Journal, the administration is also considering broader tariff hikes, with speculation of an across-the-board increase of up to 20%.
These policy shifts have heightened economic uncertainty, leaving investors on edge as they assess the potential fallout on global trade and financial markets.
Despite the prevailing bearish sentiment, institutional investors continue to show interest in Bitcoin, with inflows remaining positive. Analysts suggest that the market’s performance in the coming weeks will largely depend on the economic impact of Trump’s tariffs and the resilience of major digital assets.
As April 2 approaches, traders and investors alike are closely monitoring developments, bracing for potential market shifts as the tariff policies take effect.
