President Donald Trump will be announcing major tariffs on April 2, 2025, which he has referred to as “Liberation Day.” The announcement would have a spectacular effect on the cryptocurrency market, that is, Bitcoin (BTC) and Ethereum (ETH). Investors monitor such events closely as they can determine broad market sentiment and trading volumes.
Market Reaction to Liberation Day Tariff Anticipation
Before Trump’s tariffs, the cryptocurrency market is having a cautious but optimistic reaction. Bitcoin is now at around $84,500, posting a 0.7% gain over the last 24 hours, while Ethereum has seen price fluctuations to around $1,868, a 0.2% daily increase. Analysts attribute the bounce to increasing optimism that the tariffs will be less deep-seated than had been expected.
Bitcoin and Ethereum Key Levels to Watch
The level of Bitcoin, currently, is being closely watched, with major levels like $85,000 being important resistance. When Bitcoin goes through this level, it has the potential to open the floodgates for more growth and very well potentially more optimistic outlook from investors. Ethereum does have good support at $1,854, and resistance at $1,920. Going above that level can indicate new upward momentum for Ethereum.
Wider Consequences of Liberation Day Tariffs
The looming tariff announcement brings fears of a virtual trade war, which may trigger additional volatility in international markets. Pedro Lapenta, the CEO of research firm Hashdex, said that “risk assets such as crypto could be hurt if tariffs actually make the dollar stronger or slow down global growth.”
Investors are both optimistic and wary. BitBull Capital CEO Joe DiPasquale pointed out that there’s increasing hope the tariffs will be “more targeted,” which can reduce total negative impacts and promote an uninspiring crypto market rebound.
Altcoins and Market Trends
Other prominent altcoins like XRP and Solana are also on the rise following this tariff declaration, although there are some unstable altcoins. XRP is now at $2.12, down 1.2%, while Solana is at $125, down 1.80%. Volatility reflects a wait-and-see attitude because investors are waiting for more concrete news after Trump’s declaration.
The upcoming tariff release on “Liberation Day” has the ability to shape the crypto future, with initial bullish reactions to Bitcoin and Ethereum. Investors will stay alert for more news is out and pieces together the scale and breadth of the tariffs.
