Bitcoin and cryptocurrency values are set for a significant shift as traders await U.S. President Donald Trump’s “Liberation Day” regarding global trade tariffs—creating tension between Trump and the Federal Reserve.
The price of bitcoin is hovering around $85,000, a decline from the peak of nearly $110,000 observed at the time of Trump’s inauguration, as last year’s bitcoin rally uncovers new, unforeseen risks.
As bitcoin and crypto face a perfect storm brewed in Washington DC and Wall Street, analysts caution that the bitcoin price could plummet sharply after Trump’s latest tariff announcement.
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“Trump’s ‘Liberation Day’ is set to drop an atomic bomb on current markets—and crypto is vulnerable in the short term,” stated Zach Burks, CEO of non-fungible token (NFT) firm Mintology, in an email comment.
“It is increasingly apparent that bitcoin is the favored asset of retail investors during downturns, while gold remains the refuge for institutions—particularly in light of Trump’s influence on crypto assets,” Burks noted, citing Trump’s promise of establishing a U.S. bitcoin reserve and his growing interests in the crypto sector through World Liberty Financial and Trump Media and Technology Group.
Over the past 24 hours, bitcoin’s price and the broader crypto market have shown volatility, with traders remaining cautious ahead of Trump’s highly anticipated unveiling of global trade tariffs during a press conference in the White House Rose Garden at 4pm ET.
“Bitcoin investors have been preparing for today’s announcement, so any price drop is expected,” said Gadi Chait, investment manager at Xapo Bank, following a decline from last week’s highs of nearly $90,000.
“Uncertainty breeds caution across all markets, and crypto is navigating a tension between short-term speculation, slow policy changes, and institutional pullback. When inflation fears triggered by tariff-related uncertainties rise, crypto tends to suffer momentarily. Bitcoin has fluctuated within a wide range of $76,600 to $94,500 in recent weeks. A decisive fall below $76,600 could signify a major change in market sentiment.”
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According to Burks, traders should “anticipate substantial declines with ethereum dropping to $1,600 and the bitcoin price dipping below $80,000 owing to retaliatory tariff actions.”
Nevertheless, looking toward the future, Burks expressed optimism that the bitcoin price will perform well as “the rules governing international trade” evolve.
“The long-term outlook for crypto will be favorable,” Burks added. “Bitcoin values are likely to soar in the long run, as institutional investors shift their resources away from increasingly volatile U.S.-led institutions.”
