Stocks and Crypto Markets Rally Ahead of Trump’s ‘Liberation Day’ Tariff Reveal

CN
4 days ago

Each time Trump introduced a new tariff idea during his tenure as the 47th U.S. president, financial markets responded with sharp volatility. On the eve of Trump’s mega tariff rollout, major U.S. benchmark indices, along with the “Magnificent Seven” stocks, rebounded after a four-day rout. Bitcoin ( BTC) also gained ground, reaching $85,496 per coin by afternoon trading. The broader crypto market ticked up 2.24%, bringing its total valuation to $2.75 trillion.

Trump’s “Liberation Day” is on April 2, 2025—a date chosen by the president to introduce a sweeping tariff strategy crafted to counter what he views as unjust trade tactics by foreign governments. The plan hinges on implementing “reciprocal tariffs,” designed to mirror the duties other nations place on U.S. exports. Trump has portrayed the effort as a means to “liberate” the country from dependence on foreign imports while shielding American industries from external competition.

What’s driving the market higher? Primarily, investors appear optimistic that Wednesday’s tariff announcement will offer clearer direction on trade policy, easing the ambiguity that has hung over markets since Jan. 20. Part of the gains may also stem from mechanical factors—such as end-of-month and end-of-quarter portfolio adjustments and traders covering short positions. When it comes to crypto and other risk-on assets, some analysts suggest the market may be approaching a floor, hinting that the steepest phase of the selloff might be behind us.

Many observers suggest crypto investors are strategically placing their bets ahead of the tariff decision, aiming to capitalize on the potential upside despite the uncertainty. Adding fuel to the mood, recent disclosures of bitcoin acquisitions by heavyweight firms such as Strategy, Tether, and Metaplanet have lifted overall sentiment. Gold has also climbed to historic levels, hitting $3,130 per ounce on April 1, 2025, propelled by heightened safe-haven demand amid growing concerns over a looming global trade conflict sparked by Trump’s retaliatory tariffs.

By mid-afternoon Tuesday, gold eased slightly, settling at $3,113 per ounce. All of the major U.S. indices have cooled off by 2:15 p.m. Eastern Time, and BTC has settled below the $85,000 range.

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