The cryptocurrency market experienced a sharp decline last week, shedding over $130 billion in market capitalization as investors braced for the impact of President Donald Trump’s upcoming tariffs.
Dubbed “Liberation Day,” the tariffs are set to take effect this week, targeting goods from overseas.
As of Monday morning, Bitcoin (BTC) fell below the $82,000 mark, trading at approximately $81,700. This marks the seventh consecutive day of lower lows for BTC/USD, driven by mounting concerns over Trump’s tariff policies and their ripple effects on global markets.
The sell-off in U.S. stock futures has further exacerbated the decline, reflecting broader investor unease.
Despite the bearish sentiment, institutional investors continue to show interest in Bitcoin, with inflows remaining positive. Analysts are divided on the outlook for BTC, with Stockmoney Lizards predicting a local bottom between $80,000 and $82,000, while veteran trader Peter Brandt warns of a bearish wedge breakdown that could push prices as low as $65,635.
XRP’s dramatic decline
Meanwhile, XRP has seen a dramatic 40% drop from its recent multi-year high of $3.40, now consolidating around $2.19.
Encouraging developments, such as the SEC’s decision to drop its case against Ripple, have failed to offset the broader market sell-off. Analysts note that XRP remains in a consolidation phase, with support at $1.77 and resistance at $3.21. A breakout above $3.21 would be required to signal a bullish trend reversal.
Major cryptocurrencies have also suffered significant losses over the past week. Ethereum (ETH) fell by 10.9%, Ripple (XRP) by 15%, Solana (SOL) by 10.1%, and Bitcoin (BTC) by 5.9%.
The Kobeissi Letter reports that Trump’s tariffs will impact over $1.5 trillion worth of imports by the end of April, with reciprocal tariffs affecting up to 25 countries.
Trump’s Liberation Day
President Trump has labeled April 2 as “Liberation Day,” signaling the introduction of tariffs exceeding 20% on targeted imports.
According to the Wall Street Journal, Trump’s administration is considering broader and higher tariffs, with speculation of an across-the-board hike of up to 20%.
These developments have heightened market uncertainty, with investors closely monitoring the potential fallout.
What you should know
- Despite the gloomy short-term outlook, some analysts remain optimistic about a potential reversal in the coming weeks.
- Bitcoin’s inflows suggest sustained institutional interest, while XRP’s consolidation phase could pave the way for a significant rally if key resistance levels are breached.
- The cryptocurrency market’s performance in the coming days will likely hinge on the broader economic impact of Trump’s tariffs and the ability of major digital assets to weather the storm.
As April 2 approaches, all eyes are on the unfolding tariff policies and their implications for global trade and financial markets.
