The crypto market experienced a sharp uptick on Tuesday, April 2, 2025, as Bitcoin (BTC) and other top altcoins began trading in the green in anticipation of Trump’s Liberation Day. Liberation Day, which is scheduled to occur sometime today, will see US President Donald Trump announce fresh tariffs against over 25 of its trading partners.
According to crypto analyst Ash Crypto, Bitcoin has a history of performing well during tariff standoffs, citing the major tariff war in 2019 as a key example. In 2019, the Nasdaq sank by over 12% while Bitcoin skyrocketed by over 70% as investors scampered for safety outside the traditional markets. However, Ash Crypto warns that 2025 could be different if one or more of the trade partners retaliate with a counter tariff.
Another titan in the crypto space, Arthur Hayes shared the same bullish sentiment with Ash Crypto, suggesting that tariffs could serve as the catalyst to catapult Bitcoin and the crypto market to new highs. Meanwhile, other analysts like Alex Krueger believe that trade wars resulting from tariff standoffs could trigger a 15% crash in the crypto market. The analyst revealed this in an X post on March 23, 2025, urging investors to be prepared for the worst.
However, Alex Krueger is not the only analyst expecting the crypto market to see a massive dump from the tariff wars. Crypto critic Peter Schiff also shares the same sentiment. Like Alex, Schiff believes Liberation Day would expose the fragile nature of the crypto market and speculates a dip below $50,000 for Bitcoin if the reciprocal tariff leads to chaos.
According to CoinGecko, Bitcoin has surged back above the $86,000 mark, and the global crypto market capitalization has settled around $2.8 trillion. While several analysts have differing views on what Liberation Day will bring, the big question still remains: Will the new tariffs bring hardship upon the crypto market, or will history repeat? Time will tell, but for now, we wait to see how events will play out in coming days.
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