Bitcoin Drops 7% Amid Trump Tariff Announcement

Bitcoin prices experienced a significant decline, losing over 7% of their value in less than 24 hours. This drop occurred amidst a broader market turmoil triggered by the announcement of new tariffs by U.S. President Donald Trump. The world's leading digital currency plummeted to approximately $81,300, after reaching an intraday high of nearly $88,000 just hours earlier. Following this sharp decline, Bitcoin managed to recover slightly, trading close to $83,000 at the time of reporting.

The tariff announcement, made after the U.S. stock market closed, imposed a 10% tariff on all countries. This decision, authorized under the International Emergency Economic Powers Act of 1977, is set to take effect on April 5. Additionally, the U.S. plans to implement further tariffs on specific countries, including China, which have substantial trade surpluses with the U.S. These additional tariffs are scheduled to commence on April 9.

Following the White House's announcement, risk assets, including Bitcoin and other digital currencies, began to decline. The next day, when the U.S. stock market opened, equities saw notable drops. The S&P 500 index lost 4.8% in a single day, while the tech-heavy Nasdaq Composite experienced an even greater decline, shedding approximately 6%.

Tim Enneking, managing partner of Psalion, commented on the timing of Trump's announcement, noting that it was strategically made immediately after the close of U.S. equities markets. Enneking suggested that the administration was aware of the negative impact the announcement would have, hence the precise timing. He also pointed out that crypto markets, which operate 24/7, were immediately affected by the news, leading to a sharp decline in Bitcoin's price.

Brett Sifling, a wealth manager, echoed similar sentiments, stating that Bitcoin is increasingly being viewed as a risk-on asset. With the recent market turbulence and tariff news, investors are selling off risky assets, including Bitcoin, in favor of more conservative investments. Sifling attributed this behavior to concerns about slowing growth and a potential recession, driving investors to seek safety in less volatile asset classes.

Another analyst, known as Wendy O, offered a different perspective. While acknowledging that Trump's tariff announcement contributed to Bitcoin's decline, she suggested that other factors, such as technical analysis and market sentiment, also played a role. Wendy O noted a steady decline in Bitcoin's price since January 2025, with a significant breakdown below $85,000 in late February 2025. She also highlighted the current demand for gold as a factor, given that both Bitcoin and gold are seen as hedges against inflation and geopolitical uncertainty. Spot gold reached a new all-time high close to $3,170.00, reflecting increased investor interest in safe-haven assets.