Bitcoin Shows Resilience Amid Market Recovery, Trump's Tariff Plans Weigh on Sentiment
Bitcoin Recovery and Market Sentiment
Bitcoin saw a modest recovery on Tuesday, rising 1.3% to $83,745.0 by 09:47 ET, as broader financial markets stabilized after a tumultuous first quarter. The cryptocurrency sector, including major altcoins, also gained ground, though sentiment remained fragile due to uncertainty over U.S. President Donald Trump’s trade tariff plans.
Q1 Challenges and Bitcoin's Decline
Bitcoin faced significant headwinds in Q1 2025, shedding approximately 11% of its value. The world’s largest cryptocurrency also dropped about 24% from its record high in January, driven by profit-taking, disappointment over Trump’s crypto policies, and worsening risk sentiment amid the U.S. trade tariff agenda.
Trump's Trade Tariffs and Economic Concerns
President Trump’s plans to unveil detailed trade tariffs on April 2, dubbed “liberation day,” have heightened economic uncertainty. The tariffs are expected to target key sectors such as semiconductors, pharmaceuticals, and select commodities. With limited details available, speculation over the scope and impact of these tariffs has eroded risk appetite, leading analysts to raise expectations for a potential U.S. recession in 2025.
Trump's Investment in Bitcoin Mining
A company managed by Trump’s sons, Eric Trump and Donald Trump Jr., announced a merger and 20% stake acquisition in American Bitcoin, a mining operation majority-owned by Hut 8. This move adds to Trump’s growing portfolio of crypto ventures, including decentralized finance projects and the $TRUMP memecoin.
Crypto Market Performance
Major altcoins followed Bitcoin’s lead, with Ether rising 4% to $1,876.88 and XRP gaining 3.9% to $2.14. Cardano, Solana, and Polygon also saw increases of 5.2%, 3.3%, and 0.5%, respectively. Meme tokens, including $TRUMP and Dogecoin, posted notable gains of 2.8% and 5.8%.
Conclusion
While Bitcoin and the broader cryptocurrency market showed signs of recovery, lingering uncertainty over U.S. trade policies and economic outlook continues to weigh on investor sentiment. The sector remains vulnerable to shifting risk appetite and macroeconomic headwinds.
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