Bitcoin and altcoins dip again as tariff concerns ahead of Liberation Day increase market uncertainty - IcoHolder.

After a brief recovery on April 1, Bitcoin and major altcoins began to dip again as traders grew wary of upcoming tariff measures ahead of Liberation Day. The market had initially bounced back, buoyed by signs that U.S. President Trump had settled on a trade strategy following weeks of unpredictable tariff threats. This shift towards clarity brought relief to investors, who had been on edge amid the back-and-forth stance on trade with major partners.

During the recovery, Bitcoin surged more than 3.3%, and major altcoins like Ethereum, Dogecoin, and Solana joined the rally. Ethereum climbed to around $1,917, up 4%, while Dogecoin saw a 3% rise, touching just over $0.17. Cardano also saw a 2.5% increase. However, this momentum quickly fizzled out as concerns about the new tariff measures resurfaced.

By the time of writing, Bitcoin had dropped 1.36% from its April 1 high of $85,413. Altcoins such as Ethereum, XRP, Solana, and Dogecoin faced more significant losses, ranging between 3-5%. The global market cap fell by 2.1%, reaching $2.85 trillion, reflecting the cautious sentiment across the broader market. Traditional markets, including the S&P 500 and Russell 2000, also faced downturns, with major tech stocks like Nvidia, Amazon, and Tesla losing 5–7%.

Analysts are divided on the market's future trajectory. Some draw comparisons to the 2019 tariff standoff, where Bitcoin surged nearly 70% as investors sought safety outside traditional markets, even as the Nasdaq suffered a 12% drop. This period was also marked by the Federal Reserve’s rate cuts, which helped lift both stocks and crypto. However, the situation in 2025 is more complicated. Inflation is already running high, leaving the Fed with limited options to stimulate the economy through aggressive rate cuts. This creates uncertainty for risk assets like cryptocurrencies.

Crypto analyst Ash Crypto suggests that Bitcoin could once again decouple from equities if trade tensions escalate, although he warned that rising tariffs or inflation could delay any potential rate cuts by the Fed, leading to increased volatility in both crypto and traditional markets.

On the other hand, former BitMEX CEO Arthur Hayes believes Bitcoin could thrive under current conditions, predicting a surge to $110,000 if the Fed steps in with liquidity measures in response to slowing growth. Hayes argues that escalating tariffs could accelerate Bitcoin's next big move, especially if decentralized assets see growing demand in times of economic uncertainty.

Despite this optimism, longtime Bitcoin skeptic Peter Schiff remains unconvinced. He argues that rising tariffs could expose crypto’s fragility, predicting that Bitcoin might drop below $50,000 if economic turmoil ensues. Schiff is also dismissive of Trump’s pro-crypto stance, suggesting that traditional safe havens like gold and bonds are more likely to outperform speculative assets like Bitcoin if inflation continues to rise.

Market analyst Alex Kruger also cautioned that a tough tariff policy on Liberation Day could lead to a 10-15% crash in the crypto market within days, adding further uncertainty to the volatile landscape. With multiple viewpoints on the horizon, the cryptocurrency market faces a critical juncture as it navigates the intersection of trade tensions, inflation, and monetary policy.