Last week, the cryptocurrency market saw a sharp decline, shedding more than $130 billion in value as investors braced for the impact of new tariffs introduced by U.S. President Donald Trump. The measures, tagged “Liberation Day,” are set to take effect this week and will raise duties on a wide range of imported products.
Bitcoin felt the pressure of economic uncertainty, slipping below the $82,000 mark. The digital currency has now lost seven days in a row, mostly due to worries over the wider ramifications of Trump’s trade plans. The concurrent drop in stock futures in the U.S. has only made investors more anxious.
Despite the downturn, institutional investors are still investing heavily in BTC, showing a persistent interest in the digital asset. Strategy Inc. (NASDAQ: MSTR)’s executive chair Michael Saylor maintains a highly optimistic outlook. He envisions BTC reaching a staggering $500 trillion market capitalization, capturing approximately 5% of global capital.
Saylor believes it will surpass traditional safe-haven assets such as gold and real estate, even forecasting a potential price of $13 million per BTC by 2045.
However, opinions remain split on its short-term prospects. Analysts at Stockmoney Lizards anticipate a potential bottom forming at around $80,000, whereas experienced trader Peter Brandt has warned of a possible bearish breakdown that could push Bitcoin’s price to $65,635.
Ripple’s XRP also suffered heavy losses, plunging 40% from its $3.40 peak and stabilizing at $2.19. Investor confidence has not increased even after the U.S. SEC decided to withdraw its action against the exchange. According to analysts, the asset is presently consolidating, with resistance around $3.21 and support at $1.77. A move toward bullish momentum could be signaled by a breach above $3.21.
The broader crypto market mirrored these losses. XRP dropped by 15%, Ether by 10.9%, Solana by 10.1%, and BTC by 5.9%. Crypto exchange-traded funds (ETFs) also saw significant outflows, with Fidelity reporting a net withdrawal of $93 million.
According to The Kobeissi Letter, Trump’s tariffs could damage trade relations with up to 25 countries and affect imports worth more than $1.5 trillion by the end of this month. There is also speculation that the administration may introduce even steeper tariffs—possibly as high as 20%—on a wider variety of goods.
With Trump’s “Liberation Day” passing on April 2, uncertainty still hangs over global financial markets. Whether digital assets can recover in the coming days will largely depend on how these tariffs influence the global economy and how investors respond to the ongoing market volatility.
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