The cryptocurrency (crypto) market suffered a sharp downturn last week, losing over $130 billion in market value as investors reacted to the imminent rollout of US President Donald Trump’s new tariffs. Dubbed “Liberation Day,” the tariff measures, which will take effect this week, will impose higher duties on various imported goods.
Bitcoin (BTC) took a significant hit amid the growing uncertainty, falling below the $82,000 threshold and trading at around $81,700 as of Monday morning. This marks the seventh consecutive day of losses for BTC/USD, largely driven by fears over the broader economic repercussions of Trump’s trade policies. A broader sell-off in U.S. stock futures has further contributed to market jitters.
Despite the negative sentiment, institutional investors continue to inject funds into Bitcoin, indicating sustained interest in the asset. However, market analysts remain divided on Bitcoin’s short-term trajectory. Stockmoney Lizards predicts a potential bottom between $80,000 and $82,000, while veteran trader Peter Brandt has cautioned that BTC could see a bearish breakdown, pushing prices as low as $65,635.
XRP has also faced a steep decline, tumbling 40% from its multi-year peak of $3.40 and settling around $2.19. Even the U.S. Securities and Exchange Commission’s (SEC) decision to drop its lawsuit against Ripple has failed to lift investor confidence. Analysts suggest XRP is currently consolidating, with support at $1.77 and resistance at $3.21. A breakout past $3.21 would be necessary to signal a renewed bullish trend.
The wider cryptocurrency market has also seen considerable losses over the past week. Ethereum (ETH) has dropped by 10.9%, XRP by 15%, Solana (SOL) by 10.1%, and Bitcoin (BTC) by 5.9%.
Meanwhile, The Kobeissi Letter reports that Trump’s tariffs are expected to impact over $1.5 trillion worth of imports by the end of April, affecting trade relationships with up to 25 nations. The administration has signaled the potential for even more aggressive trade measures, with speculation of tariffs exceeding 20% across a broader range of products.
As April 2—Trump’s designated “Liberation Day”—approaches, uncertainty continues to weigh heavily on financial markets. While some analysts believe Bitcoin and other cryptocurrencies could see a rebound in the coming weeks, much will depend on the global economic impact of these tariffs and how major digital assets weather the ongoing volatility.
