Bitcoin and other major cryptocurrencies initially saw a modest rebound on April 1, boosted by optimism that President Trump had finally clarified his trade strategy after weeks of erratic tariff threats. The move briefly eased investor jitters, lifting Bitcoin over 3.3% and driving gains in Ethereum, Dogecoin, Solana, and Cardano.

However, this uptick was short-lived. With Trump’s retaliatory tariffs launching on April 2, market anxiety quickly returned. Bitcoin slipped 1.36% from its April 1 high of $85,413, while leading altcoins, including ETH, XRP, SOL, and DOGE, saw steeper losses between 3% and 5%. The total crypto market cap fell by 2.1% to $2.85 trillion, amid broader risk-off sentiment that also dragged down traditional equities and tech giants like Nvidia, Amazon, and Tesla.

Analysts are split on what’s next. Drawing parallels to 2019’s tariff standoff, when Bitcoin surged 70% as traditional markets faltered, some believe crypto might again become a refuge. But unlike 2019, the Federal Reserve now faces high inflation, limiting its ability to cushion markets with aggressive rate cuts.

Crypto analyst Ash Crypto sees a possibility for Bitcoin to diverge from stocks again if trade tensions escalate, but warns of increased volatility if China retaliates or if inflation hampers Fed action.

Former BitMEX CEO Arthur Hayes is more bullish, predicting Bitcoin could soar to $110,000 if the Fed injects liquidity to offset a slowing economy. He believes steep tariffs could accelerate crypto’s rise as investors seek decentralized alternatives.

Skeptics like Peter Schiff counter that crypto remains vulnerable. He argues that economic disruption from tariffs could drag Bitcoin below $50,000 and sees gold and bonds as safer bets. Market analyst Alex Kruger adds that Trump’s aggressive trade stance could spark a 10–15% plunge in the crypto space in the near term.