- Crypto market cap drops $100B (3.3%) as Trump tariffs rattle global markets
- Analysts divided: Hayes eyes $76.5k support by Apr 15, Van de Poppe sees ATH trigger
- Bitcoin’s hedge narrative tested; short-term volatility likely amid uncertainty
The cryptocurrency market cap dropped 3.3%, falling from $2.88 trillion to $2.78 trillion, after U.S. President Trump imposed reciprocal tariffs on numerous nations, triggering volatility across global markets. With 185 countries reportedly affected and the S&P 500 losing an estimated $2 trillion rapidly, investors now are scrambling to find stability.
Crypto markets were also impacted, as Bitcoin dipped amid the uncertainty. Bitcoin briefly neared $88K before retreating below $82K. This raises questions about whether this represents a short-term shake-up or if Bitcoin could strengthen as a hedge against economic instability.
Analyst Divide: Correction or Breakout Trigger?
Trump’s new tariff actions spurred volatility across markets. Amidst this macro chaos, experts speculate on Bitcoin’s future trajectory.
BitMEX founder Arthur Hayes predicts more turbulence, seeing a crucial test ahead. “If $BTC can hold $76.5k btw now and US tax day, April 15, then we are out of the woods,” he commented, warning traders, “Don’t get chopped up!”
Offering a contrasting perspective, trader Michael Van de Poppe called the tariff fallout the “ultimate trigger” for Bitcoin to break above $87K and push toward new all-time highs. With analyst predictions ranging from a drop to $75K to others targeting $120K by Q4 2025, significant volatility seems likely.
Related: Analyst Who Called Bitcoin Tops Warns of Potential Correction to $75,000
Bitcoin’s Role: Hedge Potential vs. Risk Asset Reality
Trump’s tariff moves refocused attention on traditional markets. Continued struggles for the S&P 500 could bolster crypto’s narrative as a hedge against economic instability. The key question remains whether Bitcoin can navigate the storm or succumb to sell pressure.
While BTC initially saw a slight rally, potentially fueled by “digital gold” speculation, its price later fell. This highlights that risk assets like crypto often remain highly correlated with broader market volatility tied to economic fears and trade tensions in the short term.
Related: Trump’s “Liberation Day” Arrives: How Will New Tariffs Affect Crypto Prices?
These tariffs could weaken the U.S. dollar’s dominance long-term, potentially benefiting Bitcoin as an alternative asset. However, in the near term, the crypto market likely faces choppy conditions as investors remain cautious pending clarity on the economic and trade impacts.
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