Bitcoin was relatively stable on Wednesday as the cryptocurrency markets anticipate announcements about Donald Trump’s proposed tariffs.
The White House has designated April 2 as “Liberation Day,” with the president scheduled to make a statement at 4 p.m. Eastern Time during his Make America Wealthy Again event in the White House Rose Garden.
There is uncertainty about which imported products will be primarily affected, and which countries will face the most significant impacts.
In anticipation of Trump’s speech, European stocks were trading lower, and according to Bloomberg, numerous Wall Street firms expect increased volatility in the S&P 500 as more details are released.
This might be concerning for Bitcoin, as downturns in stock markets often negatively affect the leading cryptocurrency.
As of the latest update, Bitcoin’s price rose by 1.1%, nearing $85,000. In contrast, Ethereum has seen a slight decrease of 0.2% in the last 24 hours, currently trading at $1,880.45, per CoinGecko data.
Data from Newhedge indicates a strong correlation between BTC and U.S. equities, currently rated at 0.74 on a scale from -1 to 1, suggesting the two markets typically move in tandem.
A report shared with Decrypt by BRN lead analyst Valentin Fournier highlighted that fears of a global trade war are causing institutional investors to reduce risk. On Tuesday, approximately $158 million left ETFs tracking Bitcoin’s spot price, as reported by SoSoValue.
“Interestingly, this capital shift is happening alongside new investments in gold, as investors seek to hedge against the uncertainty surrounding Trump’s forthcoming ‘Liberation Day’ announcements,” he noted.
Fournier also observed that Bitcoin now holds a 61.8% dominance in the total cryptocurrency market, up from 52.3% a year ago, reflecting traders’ retreat from lesser-known altcoins, according to CoinMarketCap data.
With Bitcoin’s upward momentum stalled, a pressing question remains regarding the duration of Trump’s tariff campaign and whether market struggles will compel the president to alter his approach.
In the meantime, the U.S. Bureau of Labor Statistics is expected to reveal its March employment figures on Friday morning. The previous jobs report exceeded estimates in February, yet the unemployment rate did increase to 3.9%.
According to Nigel Green, CEO of deVere Group, the president may have to reconsider his strategy within the next 6 to 12 months due to the risks of “strangling global supply chains and increasing prices for U.S. consumers.”
“History shows us that while trade wars are easily initiated, they are difficult to win, and signs of stress are already apparent across markets and corporate boardrooms,” he cautioned.
Green further argued that a reversal of these policies is “almost inevitable” since “markets desire clarity, businesses require stability, and consumers seek relief.”
Edited by Stacy Elliott.
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