Trump’s Liberation Day: The impact of tariffs on the crypto market

Apr 4, 2025

U.S. President Donald Trump’s latest tariff announcement sent the stock market tumbling, reigniting macroeconomic uncertainty. While Bitcoin remained resilient through Liberation Day, it began correcting on Sunday—likely in anticipation of Monday’s equity selloff.

The stock market nosedived globally, signaling rising investor anxiety, while the U.S. 10-year Treasury yields fell below 4%, aligning with expected flight-to-safety behavior. Technically, Bitcoin’s next support lies around $72K—an area that may attract long-term buyers.

Fundamentally, the outlook remains strong, as hashrate, which measures how much computing power is used to run and protect the network, reaches all-time highs. The higher the network’s hashing power, the more secure it becomes.

Moreover, regulatory clarity is improving, and institutional adoption is accelerating, which is a positive signal for the crypto industry. In our view, this correction may mark a historic opportunity to accumulate.

On April 2, the declared "Liberation Day," markets were rocked by a major policy announcement from President Donald Trump, who revealed a sweeping new tariff plan: a baseline 10% tariff on imports from over 50 countries, potentially rising to 50% to mirror foreign rates on U.S. goods. The policy begins April 5, with full reciprocation by April 9.

Federal Reserve Chair Jerome Powell expects Trump’s tariffs to raise inflation and lower growth, as he reiterated to journalists on April 4. Powell indicated the Fed will hold off on changing interest rates until the full impact becomes clearer. With recession fears looming, the odds of three rate cuts this year are increasing on the CME Watch Tool, with the first one likely happening in June.

As the only asset class that trades 24/7/365, crypto often acts as the first outlet for investor sentiment during periods of uncertainty, especially when traditional markets are closed. In such moments, Bitcoin tends to be the first sleeve of a portfolio to be sold, given its deep liquidity and its association with higher-risk assets, much like tech stocks or venture capital allocations.

Looking ahead, global reactions will be critical. Key trading partners—including Mexico, China, South Korea, and Japan—may soon unveil retaliatory measures, potentially shaping the next chapter in this unfolding economic story.

This report has been prepared and issued by 21Shares AG for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however, we do not guarantee the accuracy or completeness of this report. Crypto asset trading involves a high degree of risk. The crypto asset market is new to many and unproven and may have the potential not to grow as expected.

Currently, there is relatively small use of crypto assets in the retail and commercial marketplace in comparison to relatively large use by speculators, thus contributing to price volatility that could adversely affect an investment in crypto assets. In order to participate in the trading of crypto assets, you should be capable of evaluating the merits and risks of the investment and be able to bear the economic risk of losing your entire investment.

Nothing herein does or should be considered as an offer to buy or sell or solicitation to buy or invest in crypto assets or derivatives. This report is provided for information and research purposes only and should not be construed or presented as an offer or solicitation for any investment. The information provided does not constitute a prospectus or any offering and does not contain or constitute an offer to sell or solicit an offer to invest in any jurisdiction. The crypto assets or derivatives and/or any services contained or referred to herein may not be suitable for you and it is recommended that you consult an independent advisor. Nothing herein constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation. Neither 21Shares AG nor any of its affiliates accept liability for loss arising from the use of the material presented or discussed herein.

Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors.

This report may contain or refer to material that is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject 21Shares AG or any of its affiliates to any registration, affiliation, approval or licensing requirement within such jurisdiction.

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