Bitcoin experienced significant volatility following President Donald Trump’s April 2 tariff announcement, initially spiking to $88,000 before dropping to $82,000. By April 3, it had stabilized around $83,000, while the broader cryptocurrency market saw a decline of over 4%. Major altcoins like Ethereum and Solana also dropped by more than 6%, reaching multi-month lows.
Analysts suggest that the tariff news, which may help reduce market uncertainty, could attract institutional investors. Despite higher-than-expected interest rates, many experts believe that the newfound clarity might enable Bitcoin to regain upward momentum toward $90,000. Bitcoin ETFs, particularly those led by BlackRock, saw $218 million in inflows on April 2, reversing earlier outflows.
Kraken’s Thomas Perfumo, however, questioned the notion that institutional interest alone stabilizes the crypto market. He argued that the volatility itself signals strong demand for Bitcoin, a scarce asset.
Some analysts saw the sell-off as an overreaction to concerns over trade policy, underscoring Bitcoin’s resilience as a store of value.
With the demand for Bitcoin ETFs remaining robust, the cryptocurrency’s price could stabilize and potentially rise, though market participants are proceeding with caution as they continue to monitor trade policies and broader economic conditions.
