Bitcoin prices have dropped recently after U.S. President Donald Trump announced new tariffs, causing losses in risky assets.
Today, Bitcoin fell to about $81,300, according to CoinMarketCap. This is more than a 7% drop from its high of nearly $88,000 just a day earlier. Since hitting this low, Bitcoin has recovered slightly and is now trading around $83,000.
Trump announced a new 10% tariff on all countries, using his authority under a 1977 law. This will start on April 5. He also said that additional tariffs on specific countries, like China, will begin on April 9.
After this news, risky investments, including Bitcoin, started dropping. The U.S. stock market also fell sharply the next day. The S&P 500 lost 4.8% in one day, while the Nasdaq dropped even more, falling by about 6%.
Timing of the Announcement
Tim Enneking, a managing partner at Psalion, pointed out that Trump made the announcement right after the stock market closed. He believes this was intentional to limit immediate damage to stocks. However, since crypto markets never close, Bitcoin reacted quickly, dropping from its high of $88,000.
Investors Avoid Risky Assets
Brett Sifling, a wealth manager at Gerber Kawasaki, said investors see Bitcoin as a risky asset. When markets become uncertain, they sell risky investments like Bitcoin and move their money into safer options. He pointed out that the big drop in tech stocks shows this trend.
Other Factors at Play?
TikTok influencer Wendy O agreed that tariffs may have caused Bitcoin’s drop but suggested other reasons too. She pointed out that Bitcoin has been steadily falling since January when it was $109,000. She also noted that after breaking below $85,000, Bitcoin lost key support levels, making further declines more likely.
A chart below shows these price movements:
She said that the demand for gold is important because both Bitcoin and gold protect against inflation and global uncertainty.
According to Kitco News, the price of gold hit a new record high of about $3,170 yesterday.
Published: 4th April 2025
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