Cryptocurrency enthusiasts are predicting volatility ahead of the “Liberation Day” mentioned frequently on April 2, when U.S. President Donald Trump will announce new taxes affecting more than 25 countries, including Bitcoin, Ethereum, and various altcoins, all of which will face significant price fluctuations.
The global market, including cryptocurrencies, is plummeting in response to President Trump’s unusual plan to pressure over two dozen countries, including some of his strongest allies. Cryptocurrency experts, who have remained optimistic about Trump’s policies so far, anticipate a major price adjustment for top cryptocurrencies if Trump’s tax plans are actually announced on Wednesday. Bitcoin, known for its high volatility, is currently bracing for Trump’s latest play in the form of Liberation Day.
Bitcoin Teases Investors Before Liberation Day
The price of Bitcoin has shown a remarkable action in the past 24 hours by surpassing the $85,000 level and restoring confidence for investors as the price dropped near $80,000 at the beginning of this Monday. However, its performance over the past 7 days signals a bearish trend, which may be significantly affected after Trump’s announcement regarding Liberation Day.
Meanwhile, the cryptocurrency market is not performing well in the first quarter (Q1) of 2025, as Bitcoin (BTC) saw a decline of 11.82% and Ethereum (ETH) is experiencing a severe loss of 45.41% during this period.
How Might Bitcoin React on Liberation Day?
Traditionally, the cryptocurrency market, including Bitcoin, reflects the stock market, coinciding with major downturns in the stock market and the global trade market during similar periods of instability. For example, Bitcoin dropped over 27% during the US-China trade war in 2018 while it was also entering a correction mode after reaching a new high in December 2017.
In another scenario, if Trump’s tariff plan actually works, then we can expect the US dollar to appreciate in the global market. Once again, historically, Bitcoin and other altcoins have decreased in value whenever the US dollar rises.
On the positive side, Bitcoin prices are expected to rise sharply, as prices have surged since dropping below the $90,000 mark at the beginning of March. On the negative side, the decline below $80,000 is occurring as selling pressure continues to increase, causing a large number of retail investors to withdraw.
Now let’s take a look at Donald Trump’s move, will he push the market up or disappoint investors and market participants for the purpose of saving the “America First” initiative?
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