Bitcoin Struggles and the Impact of Trump Tariff Plan Explained

The U.S. President, is going to announce the taxes in the White House. Scott Bessent US Treasury Secretary stated that it will be announced on liberation day April 2, 4 pm Washington time. Reports are suggesting that the president is going to levy 20% taxes on imported goods, in the Trump Tariff Plan. Speculations in inflation rate would impact the interest rates on crypto; higher the inflation, higher the rate and vice versa.

How Trump Tariff Plan Could Shake Up the Crypto Market

BTC traders are watching closely as U.S. President prepares to announce new tariffs in Trump Tariff Plan . While some believe that the ongoing U.S.-led trade war is hurting its price, experts say Bitcoin was already struggling before the tariffs even started. Now, with the possibility of new trade restrictions, investors are trying to figure out how Trump Tariff Plan will impact the crypto market.

Bitcoin Price Struggles Started Before the Trump Tariff Plan

BTC has been stuck on the value of $89,000 from the beginning of March; there was a nominal gain of 1.65% on 2 April, and it is currently trading at $84,513.34.

Investors are of the opinion that Trump Tariff plan, which was announced in January, is one of the reasons for the slow increment in BTC. Although the bigger picture suggests that BTC was not doing well before the trade war began.

High Hopes for the U.S. Bitcoin Reserve Faded

The president mentioned the proposal called the “strategic national Bitcoin stockpile” during his campaign in 2024, it gave high expectations to Investors. Traders took it as that the U.S. government is going to purchase BTC in heavy amounts. Conversely, he signed an executive order in March that does not mention Bitcoin stockpile. It was a disappointment for the investors, it could also be the reason for the poor performance of BTC.

Inflation and Economic Concerns Add More Pressure

Inflation also has a major role in the price movement of BTC over the years. During high inflation, many traders opted for Bitcoin as a hedge against increasing prices. Currently the inflation rate has now slowed to 2.5% U.S. and 2.2% Europe inflation rates. Low interest rates may cause the Federal Reserve to cut interest rates. It could lead to shifting investors’ interest from crypto to other investment alternatives like stocks and real estate. Trump'Tariff strategy would give clarity on the speculations.

Additionally, the job market is weak. The U.S. Labor Department recently reported that job openings are at their lowest level in nearly four years. This is making traders more cautious. Many are choosing safer investments like government bonds instead of cryptocurrency, adding further pressure on the crypto market.

Trump Tariff Plan Create More Uncertainty

The President is now preparing to announce new taxes that could affect the global economy. Reports suggest he is considering a 20% tax on many imported goods. If this happens, U.S. companies might have to pay higher costs, leading to price increases. A slowdown in the economy could make investors even more cautious, which may put further pressure on Bitcoin.

What’s Next for Crypto?

While trade war has had some impact on Bitcoin, other factors like inflation, interest rates, and investor expectations are also at play. If the new trump tariff plan lead to a recession, crypto investors might become even more careful. However, if uncertainty rises, some investors could see BTC as a safe asset.