Bitcoin News: How Trump’s 25% Tariff Shake-Up Could Skyrocket Bitcoin to New Heights!

President Donald Trump’s tariff policies has shaken the global market. His imposition of taxes on various countries has caused intense fluctuations in the cryptocurrency market. Especially, the Bitcoin market volatility has shaken investor confidence. However, experts are still suggesting that these developments may have favourable long-term effects for the cryptocurrency landscape.

Trump has taken aggressive steps as part of his tariff policy. A 25% tax has been levied on Mexico and Canada. China has also faced the bitter end, receiving a 10% tax opposition. These updates have led to uncertainty in the market. A sell-off has been seen in risky assets like crypto due to this situation. As of now, Bitcoin market volatility has investors feeling cautious as it trades in the mid-$80,000s. Investors also fear that inflation caused by these decisions may prevent the Federal Reserve interest rate. This will, in turn, reduce the viability of assets that do not bear interest, like Bitcoin.

The Long-Term Benefits of Trump’s Tariff Policies 

Experts present a positive case for cryptocurrency in the long run. They claim that the new policies may cement Bitcoin’s position as a hedge against inflation. Bitcoin has tended to perform well in times of economic instability. To add to that, tariffs could undermine the dollar’s strength by increasing costs for businesses and customers. A weaker dollar could lead to increased demand for alternative assets. 

Zach Pandl, head of research at Grayscale, stated, “I think tariffs will weaken the dominant role of the dollar and create space for competitors, including Bitcoin. Prices have gone down in the short run. But the first few months of the Trump Administration have raised my conviction in the longer term for Bitcoin as a global monetary asset.”

Also, during this time of economic uncertainty, institutional investors continue to scramble to acquire Bitcoin. Bitcoin ETFs have also seen consistent inflows, marking Bitcoin’s viability in the future. Trade restrictions and sanctions may reduce liquidity in traditional finance, steering more investors towards decentralized assets. Let’s take a quick look at the Bitcoin market volatility on the charts and try to make a BTC price prediction for the coming days. 

BTC Price Analysis: Confident Gains Observed, Can Bitcoin Keep Going?

Bitcoin was trading at $82,500 at the beginning of the day, going upward from the previous day’s late uptrend. This uptrend pushed BTC to $82,950 by 6:00 UTC. Half an hour later, a golden cross was observed, and the uptrend intensified, as Bitcoin traded at  $84,460  by 10:00 UTC. However, the buying pressure reached saturation, indicated by the RSI, calling for a trend reversal. At 10:15, Bitcoin set out on a steep downtrend validated by the death cross at 9:40 UTC. The gap between the EMAs increased as the downtrend took a deeper turn. Bitcoin dipped to $82,716.

Chart 1: analyzed by raodevansh18, published on TradingView, April 2, 2025

But, at 14:35, a massive golden cross appeared and Bitcoin recovered quickly, moving up to $85,346 within an hour. However, Bitcoin faced rejection at the $85,500 level as it experienced a downturn. The downturn led to BTC getting support at $84,744. This support allowed Bitcoin to fluctuate and eventually test the resistance. After a few failed attempts, the coin eventually dipped. As selling pressure began to pile up, Bitcoin formed a stable downtrend, finding support at $83,990. The buying pressure gained control again early on April 2, as BTC was pushed up to $85,200. 

BTC Price Prediction: Bitcoin Vies With Key Resistance Level, Can It Skip Across?

Bitcoin has generated massive interest in the market, and it seems like the entire investor community is waiting to hop on after April 3’s Liberation Day announcements by Trump. If things go well, we may see some exciting action in the coming days. For now, Bitcoin looks to be on the verge of correction, with overbought conditions looming. If the buying pressure persists, BTC can make impressive progress with respect to the $85,500 resistance level.