Bitcoin Rises 1.5% Amid Trump Tariff Fears

Bitcoin's price remained steady at approximately $84,246.40 on Wednesday, reflecting a 1.5% increase by 01:30 ET. This stability was observed amidst growing caution from traders who were anticipating a significant tariff announcement from U.S. President Donald Trump. Despite a slight recovery from earlier losses in the first quarter, Bitcoin continues to face pressure due to increasing economic uncertainty.

The market sentiment was subdued as investors anticipated Trump's potential rollout of extensive trade tariffs. The President is expected to announce retaliatory tariffs on major U.S. trading partners, with the possibility of broader duties on all imports. Treasury Secretary Scott Bessent confirmed that Trump would implement maximum-level tariffs, which could be reduced if targeted nations lower their tariffs on U.S. goods. Additionally, a 25% tariff on automobiles is scheduled, with other sectors like metals, semiconductors, and pharmaceuticals potentially facing similar measures.

These developments have dampened the appetite for riskier assets, including cryptocurrencies, thereby limiting Bitcoin's upward momentum. The broader crypto market mirrored this caution, with Ether rising 0.8% to $1,857.20, while XRP slipped 1.2% to $2.0777. Solana dropped 1.9%, Cardano fell 0.5%, and Polygon declined nearly 5%. Meme coin Dogecoin dipped 0.3%, while the $TRUMP token remained flat.

Investors are concerned about the potential impact of Trump’s tariffs, which could disrupt global trade and dent economic growth. This caution has kept markets largely risk-averse, pressuring speculative assets such as Bitcoin. Martins Benkitis, CEO and co-founder of Gravity Team, noted that if tariffs come into effect immediately, it would be bad news across markets, including cryptocurrencies, with alternative coins likely taking the hardest hit. However, he also suggested that some of this impact might already be priced in, and if there is no or limited action, markets could bounce back. Benkitis added that Bitcoin's digital gold narrative could kick in, especially if countries start rotating out of USD reserves into gold or Bitcoin. Long-term, tariffs might end up being a bullish catalyst for Bitcoin.