Bitcoin (BTC) Price: Drops to $83,400 Following Trump’s Tariff Announcement

TLDR

• Bitcoin fell to $83,421.50 following Trump’s announcement of a 10% universal tariff on imports
• Trump’s trade policy overhaul includes steep reciprocal tariffs targeting China (54%), Japan (24%), EU (20%)
• Bitcoin’s velocity reached a five-month low, indicating cautious market sentiment
• Long-term holders show strong conviction, with spending at lowest levels since mid-2021
• BTC must reclaim $85,000 as support to recover, with next key support at $80,301 if bearish trends continue

Bitcoin’s price has fallen to around $83,400 in response to President Donald Trump’s latest tariff announcements. The cryptocurrency, often viewed as a digital alternative to gold, has shown its sensitivity to broader market conditions as global trade tensions rise.

Trump announced a comprehensive overhaul of U.S. trade policy on Thursday. This includes a 10% universal tariff on all imported goods effective April 5, 2025.

The policy also introduces reciprocal tariffs targeting specific nations with trade barriers against U.S. products. These additional tariffs will take effect on April 9, 2025.

Under this new policy, China faces a combined tariff of 54%, with Japan at 24%, European Union at 20%, India at 26%, and Vietnam at 46%.

Additionally, a 25% tariff on foreign-made automobiles and key auto parts will take effect on April 3, 2025.

Market Response to Tariff News

Bitcoin dropped 0.8% to $83,421.50 following the announcement, reflecting broader market concerns about potential global trade wars.

Bitcoin Price on CoinGecko

Major U.S. stock index futures plunged in early Asian trading hours on Thursday. Most Asian stock indices also tumbled in response.

Shares of crypto-related companies fell sharply in extended trading on Wednesday. Coinbase Global shares dropped 7.5%, while Bitcoin miners Marathon Digital and Riot Platforms slid 7.3% and 7% respectively.

Strategy (formerly MicroStrategy) saw its shares fall 4.6% after the bell.

Altcoins followed Bitcoin’s downward trend. Ethereum fell 1.2% to $1,832.57, while XRP edged 0.2% lower to $2.0687.

Solana declined 3.2%, Cardano fell 1.8%, and Polygon dropped 3.5%. Among meme tokens, Dogecoin lost 1%, while $TRUMP slumped over 7%.

Long-term Investor Behavior

Despite recent price struggles, key metrics suggest Bitcoin holders remain optimistic about long-term prospects.

Bitcoin’s velocity, which measures the circulation of the cryptocurrency, dipped to a five-month low last week. This indicates that holders are becoming more cautious, with fewer coins being transacted.

The reduced velocity reflects a shift in investor sentiment, with a general sense of hesitation among market participants. This cautious approach has contributed to Bitcoin’s sluggish price recovery.

In contrast to short-term caution, mid-term holders (those holding for 3-6 months) have seen an increase in wealth during this period. Many are transitioning into long-term holders, showing strengthening investor confidence.

Spending from this cohort has reached its lowest levels since mid-2021. This suggests that long-term holders are less likely to sell, even during periods of market uncertainty.

Price Outlook and Key Levels

At the time of writing, Bitcoin’s price stands at $83,403, just below the crucial $85,000 resistance level.

Earlier this week, Bitcoin surged to $88,500 but experienced a decline after Trump’s tariff announcements. The price has since stabilized above the $80,000 mark.

For recovery to occur, Bitcoin must first reclaim $85,000 as support. A confirmed recovery would be marked by Bitcoin pushing past $89,800, potentially opening a path toward higher levels.

If Bitcoin fails to breach $85,000 and circulation remains low, price could fall back to the next key support level at $80,301. Such a decline would invalidate the bullish outlook and could lead to further consolidation or bearish price action in the short term.

Gold, meanwhile, was trading at a record high in Asian trading on Friday, highlighting investors’ shift toward traditional safe-haven assets during periods of economic uncertainty.

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