The recent downturn in the cryptocurrency market has left investors reeling, with over $130 billion in market value lost as a result of US President Donald Trump’s new tariffs. These tariffs, set to take effect this week, have sparked fears of broader economic repercussions and led to a sell-off in U.S. stock futures. Bitcoin, in particular, has taken a hit, dropping below $82,000 and trading at around $81,700, marking the seventh consecutive day of losses for the digital asset.
Despite the negative sentiment surrounding Bitcoin, institutional investors are still showing interest in the asset. However, analysts are divided on the short-term trajectory of BTC. Stockmoney Lizards predicts a potential bottom between $80,000 and $82,000, while veteran trader Peter Brandt warns of a bearish breakdown that could push prices as low as $65,635.
XRP, another popular cryptocurrency, has also experienced a significant decline, falling 40% from its recent peak of $3.40 to settle around $2.19. Even news of the U.S. Securities and Exchange Commission dropping its lawsuit against Ripple has not been enough to boost investor confidence in XRP. Analysts suggest that XRP is currently consolidating, with support at $1.77 and resistance at $3.21. A breakout above $3.21 would signal a renewed bullish trend for the digital asset.
The broader cryptocurrency market has also seen losses, with Ethereum (ETH) dropping by 10.9%, XRP by 15%, Solana (SOL) by 10.1%, and Bitcoin (BTC) by 5.9%. The Kobeissi Letter reports that Trump’s tariffs are expected to impact over $1.5 trillion worth of imports by the end of April, affecting trade relationships with up to 25 nations. There is speculation of even more aggressive trade measures, with tariffs potentially exceeding 20% across a wider range of products.
As April 2 approaches, dubbed “Liberation Day” by Trump, uncertainty continues to weigh heavily on financial markets. While some analysts believe that Bitcoin and other cryptocurrencies could see a rebound in the coming weeks, much will depend on the global economic impact of these tariffs and how major digital assets navigate the ongoing volatility.
