Bitcoin price affected by Trump tariff market panic
he US and China have triggered a sharp sell-off, sparking a broad risk-off move,” Mena Theodorou, co-founder at crypto exchange Coinstash, said of the tumbling Bitcoin price. “While crypto initially showed signs of resilience, it has since followed equities lower, showing investors that no asset class is entirely shielded from macroeconomic uncertainty,” Theodorou said. Theodorou added that if tensions ease or negotiations resume before the tariffs take effect on April 10, markets may find some footing. However, if the rhetoric escalates, further downside can’t be ruled out. Importantly, the current sell-off is not driven by crypto-specific catalysts; crypto is simply moving in line with traditional markets reacting to global trade tensions. That distinction matters and may shape how crypto responds if broader conditions begin to stabilize.
Charlie Sherry, a crypto analyst at BTC Markets, noted that the volatile Bitcoin price indicates it is far from a haven asset, at least for now. “Crypto continues to show a strong correlation with risk assets, and this latest sell-off has highlighted that connection,” Sherry said. He mentioned that gold, the traditional safe-haven asset, surged to US$3,167 last quarter, showing where investors are seeking refuge in uncertain times. For now, the ‘digital gold’ narrative, which has been a key selling point for Bitcoin, isn’t holding up as Bitcoin hasn’t seen the same kind of demand that gold has, despite both assets sharing similar characteristics. Josh Gilbert, a market analyst at eToro, cautioned that crypto investors should be prepared for further sharp swings in the Bitcoin price ahead. “Volatility is going to stay,” he said. “Trump’s last trade war came in waves. Each escalation triggered a sharp sell-off and surge in volatility, and each truce or trade deal sparked relief rallies.”
Overall, the Bitcoin price has been on a downward trend following Trump’s tariff announcement, showing that the cryptocurrency market is not completely impervious to geopolitical tensions and global market dynamics. While Bitcoin had experienced highs following Trump’s re-election and executive order, recent developments with China have led to sharp declines, demonstrating the fragile nature of the crypto market in response to macroeconomic uncertainties. Experts warn that further volatility and price swings can be expected in the near future as geopolitical tensions persist, urging investors to remain vigilant and cautious in their investment decisions.
