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Bitcoin is holding its ground above $83,000, but the mood across the crypto market is anything but confident. As traders anticipate a big tariff announcement from President Donald Trump this week, dubbed “Liberation Day,” the market has hit the brakes.
At the time of writing, Bitcoin (BTC) is trading at $83,172, up about 1.8% over the past 24 hours. Meanwhile, Ethereum (ETH) is seeing a similar uptick, up 1.74% to $1,837, according to data from The Block. Other major cryptocurrencies are seeing mild gains too: XRP is at $2.11 (+0.41%), Solana (SOL) is at $126.40 (+0.2%), and BNB, Dogecoin, and Cardano have nudged upward as well.
But make no mistakes this isn’t bullish confidence. It’s a strategic pause.
“Right now, the market is in a wait-and-see mode,” said Min Jung, Analyst at Presto Research. “Everyone’s bracing for what Trump announces, especially on Liberation Day. Until we know the full scope of the tariffs, nobody’s making big moves.”
What’s Happening on “Liberation Day”?
Trump is set to announce a new wave of sweeping tariffs on April 2, a date some are now calling “Liberation Day.” While details remain under wraps, rumors suggest the tariffs will be substantial, possibly targeting major trade partners like China, Mexico, and Canada.
Read Also: Why Did the Crypto Market Crash? Bitcoin Drops to $92K as Trump Imposes Tariffs
The concern? These tariffs could spark a global trade war. According to a report from The Guardian, the domino effect of retaliatory measures from other countries might strain global markets and weigh heavily on risk-on assets like crypto.
And yet, not all sentiment is bearish.
“Some traders think the market may have overreacted to the initial tariff buzz,” said Jung. “There’s a belief that the real impact might be more muted than feared. That’s why we’re seeing people consider this dip as a potential ‘buy-the-dip’ scenario.”
Still, most investors are staying cautious until there’s more clarity.
Bitcoin’s Rough Q1: The Worst Since 2018
The excitement that fueled crypto’s late 2024 rally, largely driven by Trump’s pro-crypto rhetoric, has fizzled out. Bitcoin soared to an all-time high above $108,000 in January 2025, but it didn’t last. The introduction of tariffs and macroeconomic jitters dragged the market down. By March, BTC had dropped below $80,000.
The numbers speak for themselves. According to Coinglass, Bitcoin lost 11.82% in Q1 2025, making it the worst Q1 for the coin since 2018.
“We saw a classic ‘buy the rumor, sell the news’ scenario play out,” said Paul Howard, Senior Director at Wincent. “Traders bought in on Trump’s election win, expecting big things for crypto. But when the policy announcements actually dropped on Liberation Day, it was clear they were long-term plays, not quick wins.”
And let’s not forget inflation. The latest CPI data came in hotter than expected, causing more market turbulence. With inflation not cooling off fast enough, the Federal Reserve has signaled it may hold off on cutting interest rates. That’s another headwind for risk assets.
So, What Will Liberation Day Bring?
Despite the rough start to the year, some experts see a possible rebound in Q2.
“We’re entering a period where institutional inflows could return,” said Enmanuel Cardozo, Market Analyst at Brickken. “If the Fed does move forward with rate cuts and Trump’s team starts rolling out real crypto-friendly initiatives, that could shift sentiment fast.”
Cardozo adds that $88,668 is the key resistance level to watch. If Bitcoin can break through that, a return to $100K isn’t out of the question. However, that path depends heavily on macro conditions, Trump’s announcement, and whether or not institutional money returns to the market.
“We’re in a delicate spot,” Cardozo said. “There’s opportunity, but there’s also risk. Right now, caution is king.”
TL;DR: Traders Holding Their Breath as Trump’s Tariff Plans Loom
The crypto market is in limbo as traders wait for Trump’s April 2 “Liberation Day” tariff bombshell. Bitcoin is holding above $83K, but the scars from Q1’s downturn are still fresh. If macro conditions stabilize and pro-crypto policies gain traction, Q2 could offer a turnaround. But for now, it’s a game of patience.
