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Highlights
- US Reciprocal tariffs has been announced with countries like China now charged 34%
- The move is expected to reset the US economy and protect American jobs
- Bitcoin price has seen its growth shifted, fueling speculations of potential reversal
After a long wait, US President Donald Trump announced his reciprocal tariffs in his long-awaited speech, casting doubt on the next Bitcoin price. Determined to set trade policies for the benefit of the United States, President Trump said it is time for Tit-for-Tat tariff policies. This announcement has temporarily derailed the price of Bitcoin. The coin has now stalled from its short-term rally.
President Donald Trump Reciprocal Tariff, What to Expect
The Liberation Day’s impact on the crypto market has long been analyzed. Despite the previously announced tariffs on autos and other markets, President Trump said the tariffs will also expand to “nonmonetary” barriers like currency manipulation and “pollution havens.”
Besides this, in the President’s speech, countries like Cambodia may see charges of up to 49% on goods. China, India, and the European Union will face 34%, 26%, and 20% tariffs. Per the list of countries released by the Presidency, the U.S. government discounted its tariffs on the nations involved.
While the United States has fulfilled its promise of reciprocal tariffs, the broader market is anticipating the actions of other nations. Mexico President Claudia Sheinbaum has already reiterated plans to levy new tariffs on the US on April 3.
Canada’s Mike Carney has also outlined plans to lift tariffs if the US follows suit. As of this writing, the market impact is also resounding.
Bitcoin Price Reaction to Trump Tariff
After initially soaring as high as $88,466, the price of Bitcoin recorded a sharp drop back to $83,939. Before now, many people have speculated that the BTC price may follow stock market growth trends once the Trump tariffs are unveiled.
With the stock market in after-hours session, investors are removing their gains following the brief BTC price rally. As of writing, market data pegs the coin at a 1.11% loss in the past 24 hours. The coin has also shed off its gains for the week as the Year-to-Date growth has slipped to 10.18%
As the price of Bitcoin reversed its gains, altcoins also went on a downward slip. While Ethereum’s price dropped by 2.84% to $1,849, Binance Coin fell 1.80% to $597.
Rebound Hopes for Bitcoin
The crypto ecosystem has solid fundamentals backing its potential breakout. Should investors fully price in the trade wars, Bitcoin’s price will likely break its all-time high in the long term.
To support proponents’ bullish expectations, the US government has established a national crypto stockpile with a special Bitcoin reserve. This nation-state validation grants BTC a longer-term boost, which is complemented by private Bitcoin buyers like Tether, which bought 8,888 BTC in Q1.
This trade war may fuel inflationary growth, influence Feds’ interest rate policies, and ultimately trigger big BTC price growth in the long term.
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