Bitcoin prices saw a slight decline today, falling to $86,731.9 after two sessions of gains. This decline was largely due to massive transfers from the defunct Japanese cryptocurrency exchange, Mt. Gox.
Massive Transfers from Mt. Gox Spark Concerns
According to reports, Mt. Gox transferred 893 bitcoins, equivalent to approximately $78.11 million, to its active wallet. It also transferred 10,608 bitcoins, equivalent to approximately $927.48 million, to another dedicated wallet. These large movements have raised concerns among investors in the market, with some analysts predicting a massive sell-off that could negatively impact the price of bitcoin.
Despite these concerns, the market response was relatively moderate, with the price of bitcoin remaining above $87,000 during the early hours of this morning in Asian markets. This muted response comes from the decision to extend the deadline for settling its debts to October 31, 2025, which has eased fears of widespread liquidation. However, investors remain cautious, awaiting the implementation of new tariffs by US President Donald Trump on April 2.
Trump and Tariffs: A Potential Impact on Cryptocurrencies
Talk of tariffs by the Trump administration has triggered market shifts, helping to ease some of the pressure on cryptocurrency prices like Bitcoin. Investors expected the administration to focus on imposing tariffs on specific countries with significant trade imbalances with the United States, rather than imposing broad, industry-wide tariffs.
However, the economic outlook remains uncertain regarding US tariffs. President Trump is expected to announce these tariffs on April 2. The goal of these measures is to reduce the US trade deficit, which stands at $1.2 trillion. This move is likely to have a significant impact on financial markets, including cryptocurrency markets.
Potential Market Impact:
If strict tariffs are implemented, investors may reduce their risk appetite, which will cause a decline in Bitcoin and other cryptocurrency prices. As economic tensions rise, stock and bond markets will likely decline, which will also impact cryptocurrency markets. Bitcoin could experience significant pressure and return to lower levels if traders reduce their investments in speculative digital assets.
On the other hand, if the Trump administration chooses to impose narrower tariffs or postpone their implementation, markets could see a positive reversal in confidence. This scenario could boost investor confidence in cryptocurrencies like Bitcoin, which have seen slight increases in prices in recent months when trade tensions eased. Given these shifts, the market could expect waves of volatility based on Trump’s statements and final position. Trump and Crypto.com Collaborate: A Cryptocurrency-Backed ETF
In a separate development, Trump Media & Technology Group Corp. (operator of the Truth Social platform) announced an agreement with Crypto.com to launch a series of exchange-traded funds (ETFs) under the name Truth.Fi. These funds will specialize in digital assets and industries focused on “Made in America,” such as the energy sector. The funds will include Bitcoin and Crypto.com’s Cronos (CRO/USD), as well as other crypto assets.
This collaboration is expected to further enhance the penetration of cryptocurrencies into traditional investment markets. This could attract more investment into Bitcoin and other cryptocurrencies, helping to increase market stability in the long term. Furthermore, some expect this collaboration to boost confidence in digital currencies and encourage wider adoption in traditional financial markets.
Other Cryptocurrency Prices Today: Mixed Performance
While most altcoins saw price declines, there were some exceptions. For example, Ethereum (the second-largest cryptocurrency) fell 0.7% to $2,052.24. XRP (the third-largest cryptocurrency by market capitalization) fell 1% to $2.4323.
Solana, on the other hand, saw a 1.3% gain, and Cardano saw a notable 2.6% increase. Among meme-related cryptocurrencies, Dogecoin saw a 5.3% gain, while $TRUMP fell 3.5%.
Predictions of the Impact of US Economic Policy on Bitcoin
The impact of US economic policy is expected to continue to shape the cryptocurrency market in the near term. Uncertainty has grown regarding how Trump’s tariffs will impact financial markets. If officials implement or postpone more targeted trade tariffs, the digital market could recover, benefiting Bitcoin and Ethereum.
If authorities implement a more stringent policy, cryptocurrencies may experience greater volatility and a decline in investment volume due to increased pressure on global markets. Bitcoin’s performance will likely reflect any developments related to US trade policies, showing the relationship between traditional markets and digital currencies.
Bitcoin and other cryptocurrencies strongly respond to major economic and political factors, such as US President Donald Trump’s tariff policies. As investors await Trump’s remarks on April 2, the market impact could be significant, whether through increased pressure or easing tensions. Nevertheless, it is clear that investors and analysts are closely monitoring the situation, looking for signals that could influence market trends in the coming days.
Based on these factors, Bitcoin could remain in a state of constant volatility until the final trajectory of US economic policies becomes clear. Developments in other markets, such as gold and oil, could also impact cryptocurrency figures, further complicating the landscape for investors seeking more stable investments.
