Tariff Fears Grip Markets As Trump's April 2 Announcement Looms

• Bitcoin and traditional markets face pressure as investors brace for potential tariff announcements from President Trump on April 2, which could trigger further market volatility.
• Historical data shows Bitcoin fell 18% and S&P 500 dropped 7% in the two months following Trump’s initial tariff announcement, highlighting the correlation between trade tensions and crypto markets.
• Despite market uncertainty, Bitcoin whale addresses have continued accumulating, and US spot Bitcoin ETFs recently maintained a 10-day inflow streak before a small outflow on March 28. Global markets and cryptocurrency investors are closely monitoring April 2 as a potential flashpoint for increased market volatility, with US President Donald Trump expected to announce new trade tariffs that could escalate global trade tensions. Both traditional and digital asset markets have already shown sensitivity to trade war concerns, with Bitcoin experiencing downward pressure alongside conventional risk assets.

The relationship between trade tensions and crypto markets has historical precedent. Following Trump’s initial tariff announcement on Chinese goods on January 20, Bitcoin fell 18% while the S&P 500 dropped more than 7% over the subsequent two-month period, according to TradingView data.

Stella Zlatareva, dispatch editor at digital asset investment platform Nexo, emphasized the significance of the upcoming announcement, telling Cointelegraph: “Going forward, April 2 is drawing increased attention as a potential flashpoint for fresh US tariff announcements.”

Market concerns intensified on March 29 when The Washington Post reported that Trump had pressed his senior advisers to adopt a more aggressive stance on import tariffs, potentially signaling an escalation of trade tensions. The April 2 announcement is expected to outline reciprocal trade tariffs targeting major US trading partners, with the stated goal of reducing the country’s estimated $1.2 trillion goods trade deficit and strengthening domestic manufacturing.

Despite the turbulent economic outlook, large Bitcoin holders—known as “whales” who possess between 1,000 and 10,000 BTC—have continued accumulating the cryptocurrency. Wallet addresses in this category have grown from 1,956 on January 1 to over 1,990 by March 27, though this remains below the previous cycle’s peak of 2,370 addresses recorded in February 2024, according to Glassnode data.

Iliya Kalchev, dispatch analyst at Nexo, summarized the market sentiment: “Risk appetite remains muted amid tariff threats from President Trump and ongoing macro uncertainty. Still, BTC accumulation by whales and a 10-day ETF inflow streak point to steady institutional demand. But hawkish surprises — from inflation or trade — may keep crypto rangebound into April.”

This institutional demand was evident in the recent performance of US spot Bitcoin exchange-traded funds, which maintained a 10-day accumulation streak before experiencing a minor setback on March 28. On that day, Fidelity’s ETF recorded over $93 million worth of outflows, while other ETF issuers registered no significant activity, according to Farside Investors data.

Looking beyond immediate market concerns, analysts maintain optimistic longer-term price predictions for Bitcoin, with forecasts for late 2025 ranging from $160,000 to above $180,000, despite current volatility worries driven by global trade tensions.

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