Bitcoin plunged from $105,000 to $92,000 in a single day. The total crypto market cap shrunk by 8%. That’s what happened in early February 2025 when US President Donald Trump announced tariffs on Canada, Mexico, and China.
April 2, 2025, could redefine global trade. President Donald Trump has christened it “Liberation Day,” a moment when he’ll roll out “reciprocal tariffs” to counter nations taxing US goods.
He pitches it as a win for American workers, but the crypto world sees storm clouds gathering. After Bitcoin’s wild ride earlier this year, investors wonder: Will this bold move spark a rally or send digital currencies tumbling?
Decoding “Liberation Day”
Trump’s “Liberation Day” hits on April 2, 2025. The plan? Announce “reciprocal tariffs” on nations slapping trade barriers on US goods.
Trump’s strategy zeroes in on fairness. He’ll slap tariffs on countries that burden US exports with steep duties, a tactic Bloomberg outlined on March 24, 2025.
Think of it as a trade tit-for-tat. Yet, the ripple effects could hit hard. Joseph Politano of Apricitas Economics sounded the alarm on March 20, 2025: “Expect chaos if tariffs blanket all imports. Supply chains will buckle, and prices will soar.” Crypto, ever sensitive to global vibes, might take the brunt.
Analyst Alex Krüger isn’t mincing words. On March 15, 2025, he posted on X that, “April 2nd is similar to election night. It is the biggest event of the year by an order of magnitude. 10x more important than any FOMC, which is a lot. And anything can happen.”
Krüger, a respected voice in economic circles, says it’s all about Trump’s execution. A light touch might spark a rally. Broad tariffs? Expect a 10% to 15% crypto crash, fast.
Joseph Politano of Apricitas Economics agrees. In a March 19, 2025, report, he stated that, “The last two months have already hurt American businesses and consumers, but the April 2 deadline seriously could make all of that look like a tempest in a teapot.”
He flags the possibility of tariffs on all US imports. That’s a game-changer, threatening supply chains and prices worldwide.
The Crypto Market’s Shaky Ground: The Numbers Don’t Lie
Rewind to early February 2025. Trump announced a 25% tariff on Canadian and Mexican imports, plus a 10% hit on Chinese goods.
The crypto market flinched. CoinMarketCap data shows the total market cap dropped 8% in 24 hours. Bitcoin fell from $105,000 to $92,000. That’s a $13,000 slide, triggered by trade jitters.
Traditional markets felt it too. The S&P 500 shed 7% since February. The NASDAQ? Down 10%.
Inflation fears and recession whispers drove the decline. Crypto, tethered to risk sentiment, mirrored the chaos. “Liberation Day” could amplify this trend.
Analysts see two paths. If Trump goes soft—say, pinpointing specific nations—the crypto market might rebound. Krüger calls it a potential rally trigger.
But if blanket tariffs roll out, brace for impact. He warns of a “financial storm” by mid-April 2025, overlapping with US Tax Day on April 15. That timing could tank sentiment further.
The Washington Post noted that global players are scrambling. Mexico’s President Claudia Sheinbaum has leaned into US demands on immigration and drugs, dodging tariffs for now.
But experts say it’s a Band-Aid. The crypto market, prone to liquidations, could see chaos if tariffs bite deep.
What Next for Crypto Markets, Boom or Bust?
The clock’s ticking toward April 2, 2025. “Liberation Day” could reshape the US economy—or spark a crypto meltdown. The 8% market cap drop in February was a preview.
With Bitcoin’s fall from $105,000 to $92,000 still fresh, traders are on edge. Krüger and Politano’s warnings carry weight. No one knows Trump’s full hand, but the stakes are clear as daylight.
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