Bitcoin Drops 7% to $82,100 After U.S. Tariffs

The crypto market experienced a significant crash on April 2, 2025, following the implementation of tariffs by the U.S. President. These tariffs, which affected imports from over 100 countries, including major economies, led to a sharp decline in risk markets, including cryptocurrencies and stocks. Bitcoin, which had recently surpassed $88,000, plummeted but managed to stabilize above $82,000. As of the latest reports, Bitcoin was trading at $83,058, showing a 0.1% decrease in value for the day and a 3.0% weekly decline. This downturn marked a 23.6% drop from Bitcoin's all-time high of $108,786, which was reached earlier in the year following the President's inauguration.

The tariffs, aimed at leveling the playing field for U.S. industries, had an immediate and severe impact on global markets. The U.S. stock market saw over $1.3 trillion in liquidations, while the crypto market experienced over $500 million in liquidations. Bitcoin, the leading cryptocurrency, dropped from $88,500 to $82,100, recording a 7% fall. This market reaction was not unprecedented, as similar announcements by the President in the past had also led to negative market responses.

The future trajectory of Bitcoin's price is now closely tied to two upcoming macroeconomic events: the April 4 Fed Powell Speech and the Nonfarm Payrolls (NFP) data. Investors are cautious as these events could either boost Bitcoin's price or exacerbate the bearish trend. The ADP jobs data, which was higher than projected, is expected to differ from the NFP data. Analysts forecast that the NFP data will show a decrease from 151,000 to 80,000, adding pressure on the Federal Reserve.

The Fed's decision on interest rates is also a critical factor. According to market participants, there is a 65.4% probability that rates will remain unchanged, while there is a 34.6% chance of a rate cut, which could lower the current rates from 4.25% to 4.50% to 4.00%—4.25%. The Fed chair's speech on April 4 is anticipated to provide insights into potential policy changes and interest rate adjustments.

Industry experts have also weighed in on Bitcoin's future. Arthur Hayes, the founder of BitMEX, predicted that if Bitcoin can hold above $76,500 by April 15, it will be out of immediate danger. Another expert, RektProof, echoed this sentiment, suggesting that a dip to $76,000 could present a valuable buying opportunity. These forecasts highlight the potential for Bitcoin to recover from its recent decline, but the outcome will depend on the broader economic landscape and market sentiment.