Cryptocurrency markets are trading with caution as investors brace for former President Donald Trump’s upcoming “Liberation Day” tariffs, which are scheduled to go into effect on Wednesday and Thursday.
Bitcoin showed a slight recovery on Tuesday, though sentiment across the broader crypto landscape remains fragile.
Shivam Thakral, CEO of Indian exchange BuyUcoin, noted that the tariff rollout could significantly impact market direction.
“We’re seeing heightened uncertainty in global markets due to the ongoing trade tariff war,” Thakral told Cryptonews. “The growing correlation between traditional finance and Bitcoin is now evident. With BTC trading below $85,000, many investors are moving back to traditional assets as a safe haven.”
BTC Fills $83K–$84K CME Gap, But Direction Remains Uncertain
Bitcoin recently filled a CME futures gap between $83,000 and $84,000—often interpreted as a potential precursor to a trend reversal.
However, the asset has since dipped below its 200-day moving average. With daily liquidations remaining under $250 million, no strong directional move has emerged.
Should Trump’s tariff announcements exceed expectations in severity, analysts warn BTC may test support at $79,000—or even decline to $73,000 amid heightened investor fear.
The market remains evenly split, with the long-to-short ratio at 50-50. Trading volumes are muted, and the Crypto Fear & Greed Index remains in “fear” mode—historically a contrarian signal suggesting a possible bottom.
Former BitMEX CEO Arthur Hayes remains bullish:
“If my read on the Fed’s shift from quantitative tightening to easing is correct, then the recent low of $76,500 was the local bottom—and we’re now on our way to $250,000 by year-end,” Hayes wrote in a blog post.
10X Research Flags Possible Revisit to $73K
Analysts at 10X Research also expressed concern in early March, pointing to excessive retail enthusiasm during Bitcoin’s post-election rally as a potential sign of exhaustion.
Unless a new catalyst emerges, they caution that Bitcoin could struggle to regain bullish momentum and may revisit the $73K level in the near term.
Tariffs May Put Immediate Pressure on BTC, Says CoinShares
James Butterfill, Head of Research at CoinShares, believes the tariff rollout could exert bearish pressure on Bitcoin in the short term.
“Unlike gold, Bitcoin has a growth component—it reacts to broader economic trends and liquidity,” Butterfill explained.
He added that a combination of slower growth and rising inflation could weigh on BTC in the coming months. However, he remains optimistic about the long-term trajectory, especially once rate hikes become unsustainable amid economic slowdown.
