Quick Summary: cryptocurrency market saw a sharp decline last week, losing over $130 billion as investors reacted to President Donald Trump’s impending tariffs. Bitcoin fell below $82,000, marking its seventh consecutive day of losses, while XRP dropped 40% from its recent high. Analysts remain divided on Bitcoin’s future, with some predicting a bottom around $80,000 and others warning of further declines. As Trump’s “Liberation Day” tariffs take effect on April 2, market volatility is expected to continue.
Market Decline Amid Tariff Concerns
The cryptocurrency market faced a sharp downturn last week, shedding over $130 billion in market capitalization. This decline comes as investors prepare for the economic impact of President Donald Trump’s upcoming tariffs.
Bitcoin Falls Below $82,000
As of Monday morning, Bitcoin (BTC) dropped below $82,000, trading at approximately $81,700. This marks the seventh consecutive day of lower lows for BTC/USD, driven by growing concerns over the ripple effects of Trump’s trade policies.
The sell-off in U.S. stock futures has worsened the situation, reflecting broader investor unease across financial markets.
Institutional Investors Remain Optimistic
Despite bearish sentiment, institutional investors continue to show interest in Bitcoin. Analysts remain divided on BTC’s outlook:
- Stockmoney Lizards predict a local bottom between $80,000 and $82,000.
- Veteran trader Peter Brandt warns of a potential bearish wedge breakdown, which could push prices as low as $65,635.
XRP’s Dramatic Decline
Meanwhile, XRP has plunged 40% from its recent multi-year high of $3.40, now consolidating around $2.19.
Encouraging developments, such as the SEC dropping its case against Ripple, have not been enough to counteract the broader market sell-off. Analysts note that XRP remains in a consolidation phase, with key support at $1.77 and resistance at $3.21. A breakout above $3.21 could signal a bullish trend reversal.
Major Cryptocurrencies Take a Hit
Several major cryptocurrencies also suffered losses over the past week:
- Ethereum (ETH): Down 10.9%
- Ripple (XRP): Down 15%
- Solana (SOL): Down 10.1%
- Bitcoin (BTC): Down 5.9%
Trump’s “Liberation Day” Tariffs
President Trump has dubbed April 2 “Liberation Day,” marking the introduction of tariffs exceeding 20% on selected imports.
The Kobeissi Letter reports that these tariffs will impact over $1.5 trillion worth of imports by the end of April. Reciprocal tariffs could affect up to 25 countries. According to the Wall Street Journal, Trump’s administration is also considering broader and higher tariffs, potentially reaching 20% across the board.
What to Expect Next
While the short-term outlook appears uncertain, some analysts believe a market reversal could occur in the coming weeks.
- Bitcoin’s sustained institutional inflows suggest continued long-term confidence.
- XRP’s consolidation phase could lead to a rally if it surpasses key resistance levels.
As April 2 approaches, investors are closely watching how these tariff policies will impact global trade and financial markets. The cryptocurrency market’s performance in the coming days will largely depend on its ability to withstand these economic pressures.
