Trump’s tariffs jolt crypto markets as volatility returns

Bitcoin spiked to US$88,500 (AU$139,608) in the first hour of trading as Trump announced his “Liberation Day” tariffs. This was followed by a sharp 3.88% drop, finding support around US$85K. Traders reacted fast. First, a surge on uncertainty relief, then a sell-off as the details hit.

Altcoins followed suit. Ethereum (ETH), DOGE and Cardano (ADA) all briefly gained before risk-off sentiment set in. Fear is creeping in as Bitcoin’s dominance rises, altcoins struggling.

Volume tells the real story

On BTC Markets, trading volume surged 46% as local traders scrambled to reposition. Big players took profit on the spike, while smaller investors hesitated, are they waiting for the next shoe to drop?

What’s next?

• Retaliation risk: If China or the EU hit back hard, expect another round of panic selling. Some analysts warn of a 10-15% drop if trade tensions escalate.
• Fed wildcard: If tariffs drive inflation, does the Fed stay hawkish, or pivot to rate cuts? A dovish shift could send BTC soaring toward US$90K–100K.
• Key levels: US$87,547 is the resistance to break. Hold above, and BTC could push for new highs. Fail to hold US$80K, and we’re looking at US$73K-74K next.

Local markets on edge ahead of Australian election

Back home, markets are already jittery ahead of the Australian federal election. Traders are watching key battlegrounds: tax policy, superannuation, and digital asset regulation. A shift in government could mean new crypto rules and potential tax tweaks.

Investor mood: fear is rising

The Crypto Fear & Greed Index is at 44 (fear zone), up from 34 yesterday, but still shaky. Meanwhile, CNN’s broader Fear & Greed Index sits at 17, deep in extreme fear. The market is tense, watching for the next catalyst.

Takeaways for traders

• Short-term traders: Volatility is back. If BTC loses US$85K, brace for another leg down.
• Long-term investors: Uncertainty breeds opportunity. A Fed pivot or weak retaliation could set up the next BTC breakout.
• Aussie traders: Keep an eye on election headlines. Crypto policy could be a sleeper issue that rattles local sentiment.

The next move depends on how global markets digest these tariffs, and how Australia’s political landscape shapes up.

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