03.04.2025 12:12
As the Bitcoin price retreats from the resistance level of $85,500, the comprehensive tariff decision described by Donald Trump as "Day of Salvation" is causing concern in the cryptocurrency markets. The 12% drop in Bitcoin's price overnight following similar tariff announcements in March could be a harbinger of a new wave of selling.
Despite Bitcoin rising by 16% to reach $88,700 from its lowest level in four months at $76,600, it is currently hovering around $85,000. The comprehensive tariffs announced by U.S. President Donald Trump on April 2 have created unease in the cryptocurrency markets, and analysts agree that volatility is likely to increase. Investors are now wondering whether Bitcoin, which fell from $105,000 to $92,000 overnight following the tariff announcement in March, will face a similar scenario.
The Nightmare Begins for Bitcoin Investors
The price of Bitcoin rose to $88,700, marking a 16% increase from the four-month low of $76,600 seen on March 24. However, as of April 2, the cryptocurrency is trading around $85,000. The recent rejection of the price at the resistance level of $85,500 raises questions about whether further declines will occur in the coming days.
The announcement of comprehensive tariffs targeting imports from numerous countries, which U.S. President Donald Trump referred to as "D-Day" on April 2, is causing concern among market participants. Investors fear that this move could trigger a new wave of selling in the cryptocurrency market and pull prices down.
Among the announced tariffs are a 25% tax on automobile imports and broad tariffs on goods from countries like China, Canada, and Mexico. Aimed at reducing the U.S. trade deficit and supporting domestic production, these measures could trigger inflation and reduce risk appetite in global markets. This situation could particularly negatively impact risky assets like Bitcoin. Indeed, following a similar tariff announcement by Trump at the beginning of March, Bitcoin had dropped overnight from $105,000 to $92,000.
The trading firm QCP Capital made an assessment highlighting the effects of the tariffs announced by Trump. In a Telegram note sent to investors, the firm stated, "The U.S. seems to be increasingly intent on isolating itself for more favorable trade conditions." It also noted that the likelihood of the targeted countries "making concessions is low." QCP further pointed out that after a meeting where officials from China, Japan, and Korea explored deeper regional trade cooperation, global players are "tightening ranks rather than fragmenting under pressure," and stated, "We expect all risk assets to remain under pressure in the short term."