President Donald Trump is set to announce a 20% tax on imported goods, which could send shockwaves through the global economy and, by extension, the cryptocurrency market. Treasury Secretary Scott Bessent confirmed that the announcement will be made at 4 PM Washington time on April 2—Liberation Day. Crypto traders closely monitor the situation, as many expect the Trump Tariff Plan to create ripples far beyond traditional markets.
Bitcoin Faces Multiple Headwinds
While some argue that the U.S.-led trade war has negatively impacted Bitcoin, analysts point out that the digital asset had already been underperforming before the tariff drama gained traction. Since early March, Bitcoin has hovered around $89,000, showing only a minor gain of 1.65% on April 2. As of now, it’s trading at $84,980.43—well below its monthly high.
Investors speculate that the Trump Tariff Plan, initially proposed in January, is partly responsible for Bitcoin’s sluggish performance. However, broader market dynamics suggest that the cryptocurrency’s struggles began much earlier.
Abandoned Bitcoin Stockpile Dampens Investor Sentiment
During his 2024 campaign, Trump teased a proposal dubbed the “Strategic National Bitcoin Stockpile.” The idea led many investors to believe the U.S. government would begin purchasing large quantities of BTC. However, a recent executive order signed in March did not mention such a stockpile. This omission disappointed investors and possibly contributed to the recent BTC price downturn.
Inflation and Economic Outlook Stir Market Emotions
Inflation has long influenced Bitcoin’s value, with many investors using the cryptocurrency as a hedge against rising prices. Currently, inflation sits at 2.5% in the U.S. and 2.2% in Europe—relatively low compared to last year’s spikes. These figures have prompted speculation that the Federal Reserve may cut interest rates, possibly steering investors away from riskier assets like crypto and toward alternatives such as real estate and equities.
Adding to investor anxiety, the U.S. job market shows signs of weakness. The Labor Department recently reported the lowest number of job openings in nearly four years. In response, cautious traders increasingly opt for safer investments like government bonds.
Related article: Trump Declares War on Crypto Doubters: U.S. to Become Bitcoin Superpower After Digital Asset Summit 2025
Tariffs Could Shake Global Confidence
The proposed 20% tax on imports could increase production costs for U.S. companies, forcing them to increase consumer prices. This would likely slow economic growth, further diminishing investor confidence. If businesses scale back, Bitcoin and other digital assets could face increased selling pressure due to a risk-averse shift in market sentiment.
What Lies Ahead for Bitcoin?
Although the Trump Tariff Plan adds another layer of uncertainty, it is just one of several forces shaping the crypto market. Factors such as inflation trends, Federal Reserve policy, and investor behavior play major roles. If the tariffs trigger a deeper economic downturn, cautious investors may retreat from crypto. However, if uncertainty worsens, some may view Bitcoin as a safer long-term store of value.
The market will closely watch Trump’s economic maneuvering in the coming days. The crypto world stands at a crossroads, and the next move from the White House could decide its short-term direction.
