Trump’s Trade War and its Ripple Effect on the Crypto Market: April 2nd Tariff Announcement Looms

The cryptocurrency market, alongside traditional financial markets, is bracing for potential shocks as the looming April 2nd tariff announcement by former US President Donald Trump casts a long shadow. This potential move could significantly impact Bitcoin’s price and overall market sentiment throughout the month.

The introduction of import tariffs on Chinese goods, initially announced on January 20th, 2025, marked a pivotal moment. This triggered a ripple effect, fueling global tariff fears and increasing inflation concerns. This, in turn, dampened investor appetite for risk assets, including cryptocurrencies.

Subsequent data reveals that Bitcoin (BTC) experienced an 18% decline, while the S&P 500 (SPX) index dropped over 7% in the two months following the initial tariff announcement. This data underscores the interconnectedness of global markets and the sensitivity of both traditional and digital assets to geopolitical events.

\”The April 2nd date is a key focus as a potential trigger for new US tariff announcements,\” commented Stella Zlatareva, dispatch editor at Nexo, a digital asset investment platform.

Further fueling market anxieties, reports emerged on March 29th indicating that former President Trump urged his advisors to adopt a more aggressive stance on tariffs, suggesting a potential escalation of trade tensions. This news added to the prevailing uncertainty.

The April 2nd announcement is anticipated to outline reciprocal tariffs targeting major US trading partners, aiming to reduce the country’s substantial trade deficit and bolster domestic manufacturing.

Related: Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur Hayes

Whale Accumulation Amidst Uncertainty

Despite the prevailing market uncertainty, significant Bitcoin holders, often referred to as \”whales,\” have continued accumulating BTC. Data from Glassnode shows a consistent number of addresses holding between 1,000 and 10,000 BTC since the start of 2025.

Iliya Kalchev, dispatch analyst at Nexo, noted, \”Risk appetite remains subdued due to tariff threats and macroeconomic uncertainty. However, whale accumulation and continued ETF inflows suggest persistent institutional demand. Yet, surprises from inflation or trade could keep crypto prices range-bound into April.\”

Related: $1T stablecoin supply could drive next crypto rally — CoinFund’s Pakman

It’s worth noting that the 10-day accumulation streak of US spot Bitcoin ETFs ended on March 28th, with Fidelity’s ETF experiencing significant outflows. Data from Farside Investors highlights this shift in ETF activity.

Despite short-term volatility, analysts maintain a positive outlook for Bitcoin’s price in late 2025, with predictions ranging from $160,000 to over $180,000.

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