After Trump’s Tariffs, Bitcoin Price Drops Over 6%, Global Markets Brace for Further Impact
Tariffs hit Bitcoin and altcoins as market sentiment turns cautiously bearish.
Following U.S. President Donald Trump’s latest trade tariff announcement, the market is spreading.
Bitcoin [BTC], the flagship digital asset, was the first to feel the impact, dropping over 6% after the announcement on April 2.
As Trump’s tariffs target 185 countries, the effects have been swift—with liquidation volumes hitting hard and asset prices in free fall.
Can Bitcoin weather the storm supported by global economic effects, or is this the beginning of a deeper onslaught?
Trump’s Tariff Storm
On Wednesday, U.S. President Donald Trump announced a set of aggressive tariffs that rocked global financial markets.
At least a 10% tariff will be levied on all exports to the U.S., with additional duties targeting the 60 countries with the largest trade imbalances.
China faces the brunt of the impact with a 34% tariff, followed by India (26%), Japan (24%), and the European Union (20%).
In a televised address from the White House Rose Garden, Trump justified the action, claiming the U.S. has been “charged approximately half of what’s owed and has been charged for years.”
Despite the initial positive response from the crypto market, the brief rally quickly turned south following the announcement of the 10% blanket tariff.
As the full scope of the tariffs became clearer, sentiment shifted, and prices fell. Bitcoin traded near $87,000 before plummeting sharply to $82,000 prior to a mild recovery.
Severe Damage to Bitcoin Prices from Tariffs
After the sharp drop triggered by Trump’s tariff announcement, Bitcoin attempted to stabilize in the $83,000 range.
The latest hourly chart shows a mild recovery after the initial plunge, but momentum remains weak.
It is evident that buying interest has diminished, with the RSI hovering around 45, indicating a neutral to slightly bearish stance. With decreasing volume, Bitcoin’s ability to regain higher levels remains uncertain.
As the market digests the broader economic impacts, cautious trading may persist.
