Bitcoin Falls as Trump Ratchets Up Trade War With ‘Reciprocal’ Tariffs

Cryptocy prices have been volatile in the run-up to April 2, whipsawing based on investors’ expectations of how tariffs could blunt economic growth or bolster inflation. Meanwhile, the administration’s messaging on tariffs has shifted nearly day-by-day. White House Press Secretary Karoline Leavitt said on Tuesday that the president’s team was still “perfecting” its tariff rollout, but overall, Trump had made “a decision and a determination.”

Trump had floated “reciprocal tariffs” on countries that charge levies on American goods, but it was unclear whether those measures could apply more broadly to all countries, or if goods from certain industries or nations would end up being exempt. Tariffs may impact the Federal Reserve’s calculus on rate cuts this year. If tariffs  lead to sustained price pressures, analysts say risk assets like crypto could face continued pressure as  the U.S. central bank keeps borrowing costs elevated to combat rising prices.

Amid Trump’s trade kerfuffle, Bitcoin’s price dipped as low as $77,000 last month. And at this point, markets have digested most of the uncertainty surrounding Trump’s trade measures, according to Thomas Perfumo, global economist at the crypto exchange Kraken. “While headlines around ‘Liberation Day’ and the associated tariff measures continue to generate unease, much of the expected impact appears to have already been priced into the crypto market,” he told Decrypt.