Tariff Fears Shake Confidence in Bitcoin and Ethereum – Is a Bigger Crash Coming?
Bitcoin and Ethereum – Bill Ackman, the prominent hedge fund manager and longtime supporter of Donald Trump, has called for a 90-day halt to the US tariff escalation, which is scheduled to take effect on April 9. His plea comes as markets, including cryptocurrencies, continue to feel the effects of recent US trade policy changes. Ackman warned that without a pause, the US could face an “economic nuclear winter” that would devastate business confidence, halt investment, and lead to widespread layoffs.
In his post on X (formerly Twitter), Ackman criticized the administration’s approach, stating, “This is not what we voted for,” and emphasized that business confidence is essential for economic stability. He also noted that President Trump’s new tariffs, which include a 25% tariff on foreign-made automobiles, a 10% baseline tariff on imports, and reciprocal tariffs targeting countries with levies on US goods, could severely damage international trade relations.
Crypto Market Reacts to Trade War Fears
The market response to the tariff escalation has been swift and harsh. Bitcoin (BTC) dropped to $77,300 on Monday, marking a 7.6% decline in just 24 hours and erasing nearly $70 billion in market capitalization. Similarly, Ethereum (ETH) fell 14% in a single day, dropping to $1,555. These declines followed a brief Bitcoin rally last Thursday, when the coin spiked to $87,800 during Trump’s tariff announcement, only to retreat sharply.
Market Manipulation and Bitcoin’s Safe Haven Status
According to Tracy Jin, the COO of MEXC Exchange, the market is currently highly vulnerable to manipulation, and this could lead to further disappointment. This situation raises concerns about Bitcoin’s reputation as a safe haven asset, especially with the possibility of an even sharper outflow of funds from Bitcoin ETFs. Jin forecasts that Bitcoin could drop to a $52,000–$56,000 range by summer. Meanwhile, Ethereum faces even more significant challenges, with structural issues extending beyond the tariff impact.
As the trade conflict unfolds, the volatility in crypto markets is expected to continue, leaving investors uncertain about the future direction of these assets.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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