Bitcoin tumbles after "Liberation Day" tariffs hit markets

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State of crypto

• Tariff shock sends Bitcoin tumbling again
• Wall Street slides as new tariffs spark investor retreat
• Grayscale introduces Bitcoin Options ETFs for income generation
• Fidelity launches zero-fee crypto retirement accounts
• Bitcoin volatility hit year-high levels in March

Check prices on the BTC Markets exchange

Tariff shock sends Bitcoin tumbling again

After climbing steadily to nearly US$88,000 in anticipation of Donald Trump’s official tariff announcement, Bitcoin is now trading near US$83,000 following a global market selloff sparked by the policy’s release on April 2. The announcement, which detailed sweeping reciprocal tariffs against major trading partners, triggered widespread uncertainty across both traditional and digital asset markets.

According to Reuters, the plan includes significant levies on imports from China, the EU, and Mexico, escalating fears of a prolonged trade war. Crypto markets initially rallied on anticipation, but reversed quickly as risk-off sentiment took over.

Traders reacted fast. First, a surge on uncertainty relief, then a sell-off as the details hit. Now, investors are watching key levels closely: US$87.5K remains resistance, while failure to hold above US$80K could open the door to a drop toward US$73K–74K.

With the Fed’s next move still unclear and global trade tensions rising, the crypto market appears to be bracing for a volatile April – possibly like what happened all throughout March.

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Wall Street slides as new tariffs spark investor retreat

US stocks fell sharply on Wednesday after Donald Trump’s administration unveiled a sweeping new tariff policy targeting key trading partners, including China, the EU, and Mexico. The announcement triggered widespread uncertainty, with the Dow dropping over 500 points and the S&P 500 falling more than 1.5%. Technology and industrial sectors were among the hardest hit, as investors feared retaliation and disruption to global supply chains. Analysts warned that prolonged trade tensions could dampen corporate earnings and slow economic growth in the months ahead.

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Grayscale introduces Bitcoin Options ETFs for income generation

Grayscale has launched two Bitcoin options-based ETFs - the Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI) - aimed at providing investors with dividend income through call-writing strategies on the company's existing Bitcoin ETF products. This initiative comes as Bitcoin's price has been range-bound, influenced by recent geopolitical events such as the recent tariff plan announcement from Trump.

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Fidelity launches zero-fee crypto retirement accounts

Fidelity has unveiled new zero-fee crypto retirement accounts, allowing users to gain exposure to Bitcoin, Ethereum, and Litecoin without incurring management fees. Designed to make digital assets more accessible to long-term investors, the offering includes tax-advantaged options such as Roth IRAs and Traditional IRAs. This move reinforces Fidelity’s continued push into the digital asset space, even amid broader market volatility.

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Bitcoin volatility hit year-high levels in March

Bitcoin’s price volatility surged in March, reaching levels not seen in nearly a year, according to new data reported by Forbes. Analysts attribute the spike to shifting monetary policy expectations, ongoing geopolitical tensions, and the dramatic swings tied to U.S. tariff announcements. Despite overall bullish momentum in early March, the market saw increased intraday price swings as traders reacted swiftly to macroeconomic uncertainty and policy shifts.

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Crypto Fear & Greed Index

Source: Fear & Greed Index

BTC Markets in the news

Bloomberg: Bitcoin Succumbs to Risk Asset Slump as Trump Sets Tariffs

Bitcoin and other major cryptocurrencies dipped after President Donald Trump imposed tariffs on US trading partners worldwide, triggering a slump in risk assets.

“The next big move hinges on geopolitics, policy shifts, and whether traders see Bitcoin as risk or refuge,” said Rachael Lucas, crypto analyst at BTC Markets. For Bitcoin, US$80,000 is a “must-hold” level, she added.

Read the full article here.

Cointelegraph: ‘National emergency’ as Trump’s tariffs dent crypto prices

Crypto markets dipped after US President Donald Trump's declaration of a national emergency and sweeping tariffs on all countries as part of his latest salvo in the ongoing trade war.

Rachael Lucas, crypto analyst at Australian crypto exchange BTC Markets, said the brief surge was a case of “uncertainty relief,” then a sell-off as the full tariff details were released.

“On BTC Markets, trading volume surged 46% as local traders scrambled to reposition. Big players took profit on the spike, while smaller investors hesitated,” she said in a statement.

She added that if China or the European Union “hit back hard,” expect another round of panic selling.

Read the full article here.

Switzer TV: What we’re looking at buying during the Trump tariff madness

Caroline Bowler, CEO of BTC Markets, joined Switzer TV to discuss how we’re contributing to the development of a strong regulatory framework for Australia’s digital asset sector.

“We ourselves are a holder of an Australian Financial Services licence. We’ve been actively working with successive governments around an appropriate and proportionate regulatory framework here in Australia... We've been told by both Labor and Liberal parties that the appropriate regulation of cryptocurrency is a priority for them. That’s certainly very positive for the country.”

Watch the full interview here.

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Read our guide on how to DCA with BTC Markets.

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The week ahead: economic events

Thursday, April 3rd

• Australia Balance of Trade
• Canada Balance of Trade
• US Reciprocal Tariff Plan Announcement 

Friday, April 4th

• US ISM Services PMI, Non-Farm Payrolls, & Unemployment Rate
• Canada Unemployment Rate

Saturday, April 5th 

• US Fed Funds Interest Rate

Monday, April 7th

• Germany Balance of Trade

Tuesday, April 8th

• Australia Consumer Confidence MoM & Business Confidence

Wednesday, April 9th

• Canada Ivey Purchasing Managers Index
• Japan Consumer Confidence

Thursday, April 10th

• US Fed Funds Interest Rate, Core Inflation Rate MoM, Core Inflation Rate YoY, Inflation Rate MoM, & Inflation Rate YoY
• China Inflation Rate

Source: Trading economics

Market reflections

Australia: Global fallout looms as US tariffs escalate, putting Australia on alert

Australia is facing rising economic uncertainty as Donald Trump’s sweeping tariff plan triggers fears of a broader trade war. Prime Minister Anthony Albanese has warned that Australia will not be immune to the global fallout, though the country may be better positioned than others thanks to its consistent trade surplus with the US and key strategic alliances.

However, analysts say even if Australia avoids direct penalties, second-order effects on global trade flows, business confidence, and investment could still weigh on the local economy.

The timing of the tariff shock also intersects with the lead-up to Australia’s 2025 federal election, where economic management, inflation, and digital asset regulation are expected to be central campaign issues. With the Reserve Bank of Australia maintaining a cautious outlook and the economy already showing signs of strain, policymakers will be watching international developments closely in the weeks ahead.

United States: "Liberation Day” tariffs launched to tackle trade deficits

The Trump administration has rolled out sweeping new tariffs under the banner of “Liberation Day,” aiming to reduce long-standing trade imbalances by imposing reciprocal duties on imports from major trading partners, including China, Mexico, and the EU. The White House claims the move is necessary to “rectify unfair trade practices” that have led to persistent U.S. goods trade deficits. However, critics warn the strategy could ignite a global trade war, with immediate ripple effects already seen in equities, commodities, and crypto markets as investors brace for retaliatory actions and increased economic uncertainty.

China: China pushes back as US tariffs hit 54%

China has condemned the latest round of US tariffs, which have raised the average rate on Chinese goods to a staggering 54%, calling them “unilateral and protectionist” measures that will harm global trade. Beijing’s Ministry of Commerce warned of necessary countermeasures, stating the US actions violate World Trade Organisation rules and threaten to destabilise global supply chains. Meanwhile, Chinese officials reaffirmed the country’s commitment to economic resilience and domestic innovation, vowing to protect its industries and explore stronger trade ties with other global partners.

Germany: Economy shows early signs of recovery as inflation eases

Germany’s economy is showing cautious signs of improvement, with business sentiment rising for the fifth straight month in March, according to the Ifo Business Climate Index. The upswing in confidence comes as inflation continues to cool, with preliminary data showing Germany’s annual inflation rate eased to 2.2%, down from 2.5% in February. While growth remains sluggish, economists are hopeful that falling prices and a stabilising business outlook could mark the beginning of a broader recovery across Europe’s largest economy.

Canada: Partial tariff exemption sparks backlash as key industries still hit

Despite being spared from Donald Trump’s sweeping new list of global trading partners facing tariffs, Canada is bracing for economic fallout as steep 25% levies on steel, aluminium, and automobiles are still set to take effect. Prime Minister Mark Carney acknowledged the blow, vowing to respond with countermeasures, while business leaders warned the exemptions offered little protection for core Canadian industries.

Flavio Volpe of the Automotive Parts Manufacturers’ Association called the result “like dodging a bullet into the path of a tank,” highlighting the potentially devastating impact on the auto sector. With key sectors at risk and retaliatory tariffs already in place on US goods, Canada now faces intensified economic and political strain amid a federal election campaign.

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