Bitcoin and Altcoins Plummet as Trump's Tariffs Loom on Liberation Day

Hold onto your hats, crypto fans! After a brief bounce back on April 1, Bitcoin and the major altcoins are diving again as we edge closer to Liberation Day. The market kicked off the week with a surge, but the thrill didn't last long.

Traders were buzzing with relief as U.S. President Trump seemed to finally nail down a trade strategy after weeks of wild tariff threats. His flip-flopping had everyone on edge, so even a whisper of clarity was a breath of fresh air.

Ethereum, Dogecoin, and Solana joined the party with Bitcoin (BTC), which soared over 3.3% on Tuesday. Ethereum (ETH) hit around $1,917, up 4% in a day. Dogecoin (DOGE) flirted with $0.17, up 3%, while Cardano (ADA) nudged up 2.5%. But the party ended fast as the same old worries crept back in.

Now, with Trump's reciprocal tariffs set to drop today, the market's nerves are jangling again.

At press time, BTC had dropped 1.36% from its April 1 peak of $85,413. The big altcoins like ETH, XRP, SOL, and DOGE took a harder hit, with losses between 3-5%.

The global market cap tanked 2.1% to $2.85 trillion as everyone played it safe. Even traditional markets like the S&P 500 and Russell 2000 took a hit over the past week, with tech giants like Nvidia, Amazon, and Tesla sliding 5-7% in the same timeframe.

Analysts are all over the place on what's next for the market.

Will history repeat?

Crypto guru Ash Crypto reminds us that the last big tariff showdown in 2019 sent the Nasdaq tumbling 12% while Bitcoin skyrocketed nearly 70% as investors hunted for safety outside the usual suspects.

BTC shot up from under $6,000 to almost $13,800 in just a few months, and gold saw a similar rush to safety.

Ash Crypto says that move wasn't just about fear—it was also about the Federal Reserve slashing rates three times that year, "flooding the market with cheap money," which helped lift both stocks and crypto later on. Traders were prepping for the worst but also betting on central banks to cushion the fall.

Fast forward to 2025, and while it feels like déjà vu, Ash Crypto points out some big differences.

Inflation's already on fire, which ties the Fed's hands. Unlike 2019, they might not be able to cut rates as aggressively this time. That means risk assets, including crypto, might not have the same safety net if things start to shake.

Still, Ash Crypto thinks Bitcoin could break away from equities again, especially if trade tensions crank up. But he warns that if China hits back with its own tariffs or if inflation keeps climbing, the Fed might hold off on rate cuts, sparking more chaos across both crypto and traditional markets.

Experts are divided

Former BitMEX CEO Arthur Hayes is all in on Bitcoin thriving in this mess. He says tariffs won't stop Bitcoin; they might even fuel its next big surge.

Hayes thinks if the economy slows down due to higher import costs, the Fed will have to step in with liquidity measures, just like in past crises.

He's calling for a potential jump to $110,000 if the Fed loosens its monetary policy in response to slowing growth. And if tariffs go over 50%, the rally could get even wilder, driven by demand for decentralized assets.

But not everyone's buying the hype. Bitcoin skeptic Peter Schiff thinks Liberation Day could expose crypto's weak spots, especially if the new tariffs spark economic chaos. In that case, Schiff predicts Bitcoin could crash below $50,000.

He's not buying the optimism around Trump's pro-crypto stance either, saying it won't matter if inflation spikes and global growth tanks. In his view, traditional safe havens like gold and bonds are way more likely to shine if things go south.

Market analyst Alex Kruger has also sounded the alarm, warning that a tough tariff policy on Liberation Day could send the crypto market crashing 10-15% within days. Buckle up, folks—it's going to be a wild ride!