Bitcoin Price Prediction Following Trump’s Tariff Crash – Here’s When The Market Will Recover

Donald Trump’s Liberation Day tariffs have sent global financial markets tumbling, with even risk haven assets like Gold ($XAU) sharply lower on Thursday

Experts like Wedbush’s Dan Ives have described Trump’s tariffs as “worse than the worst case scenario” expected by the market. Major stock indices are deep in the red, with the S&P 500 down 4.6% and the tech-heavy Nasdaq sliding 5% on the day.

Crypto prices have crashed as well, even though Bitcoin has impressed some with its resilience, trading above the $81,600 support at press time. Altcoins, on the other hand, are faring much worse, with Pi, Hyperliquid, Pepe and Fartcoin among the worst performers

Yet, Bitcoin price predictions from prominent analysts suggest that the crypto market is days away from a bullish reversal and the next “up only” rally

What Trump’s Tariffs Mean For Bitcoin?

Bitcoin continues to have a strong correlation with US equities, particularly the tech-heavy NASDAQ 100

Unsurprisingly, it is reacting negatively to Trump’s steep tariffs on major including partners, including 54% on China, 46% on Vietnam, 32% on Taiwan, 26% on India and 20% on the European Union. The president also announced a 10% baseline tariff on all nations

The steep tariff hikes have sparked fresh stagflation fears — a troubling mix of high inflation and sluggish economic growth.

For instance, the US Dollar (DXY) is down by 1.6% on Thursday, indicating that investors aren’t bullish on the US growth prospects and anticipate looser monetary policy from the Federal Reserve this year

The weakness in the dollar is counter-intuitive since usually the currency of tariff imposing country rises. Seems investors are more focused on potential weakness in US growth as a result of tariffs. It's a substantial regressive tax – about 2% of GDP.

— Kathy Jones (@KathyJones) April 3, 2025

Industrial commodities like Oil and Copper are also down, a sign of the aforemention recession worries

With Commerce Secretary Howard Lutnick claiming that Trump wouldn’t back down on tariffs, equities and crypto prices could extend their decline in the coming days

However, several macroeconomic experts are still confident that a crypto bull rally is imminent

Bitcoin Price Prediction – When Will The Crypto Market Recover?

Every recent Bitcoin bottom is formed out of bad news. Could it be that Donald Trump’s Liberation Day tariffs lead to a macro bottom?

The steep tariffs on certain trading partners, including the 54% tariff on China, have led experts to believe that the President isn’t serious about sticking with these rates long term

Moreover, Trump’s announcement could force the Federal Reserve’s hand, accelerating the case for rate cuts. Interest rate traders are now pricing in 3 rate cuts this year, up from one

Crucially, GMI’s Head of Macro Research Julien Bittel had projected that the Bitcoin price would bottom in the first week of April, citing the soaring global liquidity. Indeed, the Global M2 money supply has an extremely strong correlation with BTC, with a ~12-week lag

Considering that the Global M2 has been rallying since early January, the Bitcoin price could see a bullish reversal as early as the second week of May

Bitcoin price predictions from prominent analysts like Fundstrat’s Tom Lee suggest that the largest cryptocurrency will hit $150,000 in 2025. Dips in the $75,000 – $80,000 range are excellent buying opportunities.

These Cryptos Could See The Most Demand

Experts expect the tariff uncertainty to supercharge the demand for Bitcoin over altcoins. Experts suggest that the Bitcoin Dominance is trending upwards again and could hit 66 – 71% in the coming weeks

Altcoins showing a strong correlation to BTC are also among the best cryptos to buy now

For instance, Fartcoin has emerged as an excellent beta play on Bitcoin. The Fartcoin price has declined sharply in correlation to BTC but continues to hold above the $0.33 swing low, preserving the bullish market structure

Smart money investors could also continue to bet on low-caps. The recent $ROUTINE, $GHIBLI and $TITCOIN explosive rallies indicate that small-cap cryptos won’t be impacted by the broader market outlook and continue to offer 100x opportunities

Investors are now eyeing Solaxy (SOLX) as the next potential 10x crypto. The first-ever prominent Solana layer-2 coin has raised nearly $30 million in its ICO behind continuous six-figure investments from whales

Solaxy’s zero-knowledge rollup architecture aims to tackle the network congestion issues on Solana during periods of heavy traffic

Most top L2s have multibillion-dollar valuations, which has led experts to believe that SOLX is highly undervalued during its presale and could offer up to 10x returns following its launch

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